Re: Alexander Elder's new "SafeZone Stop"

[Clyde Lee <clydelee@xxxxxxxxxx>]

The following may be a version using arrays.

I have not really checked this out so treat with care.

Clyde

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{ Barry Silberman's version of Alexander Elder's "SafeZone Stop" from book
"Come Into My Trading Room" page 173}

inputs:  Price((H+L)/2 ),
        NDays(15),
        Length( 22),
     MULTIPLELONG(1),
     MULTIPLESHORT(1);

vars:    MA(0),  LONGSUM(0),  SHORTSUM(0) ,
        COUNTLONG(0), COUNTSHORT(0), AVGLOW(0),
         AVGHIGH(0), LONGSTOP(0), SHORTSTOP(0),
         LSTOP(0), SSTOP(0),J(0);
Vars:    UseDays(Iff(NDays<150,NDays,15)), IsUP(False), IsDN(False);

Arrays:  LDAY[150](0), SDAY[150](0);

{determine trend by slope of EMA}
MA = xaverage( Price, Length );

IsUP = MA > MA[3];
IsDN = MA < MA[3];

{SafeZone for Longs}

IF IsUP THEN BEGIN
 For J = 0 to 14 begin
  LDAY[J+1] = IFF(L[J+1]>L[J+0], L[J+1] - L[J+0], 0);
 End;
End;


{TOTAL ALL VALUES OF LOWS BEING LOWER THAN PRIOR LOW}
LONGSUM = 0;
For J = 1 to 15 begin
 LONGSUM = LDAY[J] + LONGSUM;
End;

{COUNT NUMBER OF DAYS WITH LOWS BEING LOWER THAN PRIOR LOW}

COUNTLONG = 0;
For J = 1 to 15 begin
 If LDAY[J] > 0 THEN COUNTLONG = COUNTLONG + 1;
End;

{GET AVERAGE OF LOWS LOWER THAN PRIOR LOW}
IF COUNTLONG <> 0 THEN AVGLOW = LONGSUM / COUNTLONG;

{CALCULATE STOP AT "X" TIMES AVGLOW}
LSTOP = LOW[1] - (MULTIPLELONG * AVGLOW[1]);

{PREVENT STOP FROM BEING LOWERED}
LONGSTOP = MAXLIST(LSTOP, LSTOP[1], LSTOP[2], LSTOP[3], LSTOP[4], LSTOP[5]);

{SET PLOT}
IF IsUP THEN PLOT1(LONGSTOP, "STOP");


{SafeZone for SHORTS}
IF IsDN THEN BEGIN
 For J = 0 to 14 begin
  SDAY[J+1] = IFF(H[J+1]<H[J+0], H[J+0] - H[J+1], 0);
 End;
End;


{TOTAL ALL VALUES OF HIGHS BEING HIGHER THAN PRIOR HIGH}
SHORTSUM = 0;
For J = 1 to 15 begin
 SHORTSUM = LDAY[J] + SHORTSUM;
End;

{COUNT NUMBER OF DAYS WITH HIGHS BEING HIGHER THAN PRIOR HIGH}
COUNTSHORT = 0;
For J = 1 to 15 begin
 If SDAY[J] > 0 THEN COUNTSHORT = COUNTSHORT + 1;
End;

{GET AVERAGE OF HIGHS HIGHER THAN PRIOR HIGH}

IF COUNTSHORT <> 0 THEN
AVGHIGH = SHORTSUM / COUNTSHORT;

{CALCULATE STOP AT "X" TIMES AVGHIGH}
SSTOP = HIGH[1] + (MULTIPLESHORT * AVGHIGH[1]);

{PREVENT STOP FROM RISING}
SHORTSTOP = MINLIST(SSTOP, SSTOP[1], SSTOP[2], SSTOP[3], SSTOP[4],
SSTOP[5]);

{SET PLOT}
IF IsDN THEN PLOT1(SHORTSTOP, "STOP");



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Clyde Lee   Chairman/CEO          (Home of SwingMachine)
SYTECH Corporation          email: clydelee@xxxxxxxxxxxx
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