Second Pullback Strategy - Wealth Lab Forum

Second Pullback Strategy

Author: CECSJOY

Creation Date: 2/9/2009 11:46 AM

Wealth Lab » Trading Strategies » Second Pullback Strategy

CECSJOY

2/9/2009 11:46 AM

Good Day,

I was referred to this site by Fidelity trader support for expert help in creating a script that is not available using the default wizard on Wealth Lab 5.3. The 3 conditions are:

1 ) The stock is in the SECOND pullback of an uptrend

2.) It is at or near (but not below) its 20 day moving average, and

3.) Volume is declining

As a new Wealth Lab 5.3 user without knowledge of programing, I wonder if someone has the ability to create what is needed to meet these conditions for Wealth Lab 5.3 ?

Thank you, and Have a great day!

Eugene

2/9/2009 12:01 PM

QUOTE:
1 ) The stock is in the SECOND pullback of an uptrend

What is the definition of a pullback?

QUOTE:
2.) It is at or near (but not below) its 20 day moving average, and

How near is "near"?

QUOTE:
3.) Volume is declining

Compared to (e.g. to last day, a moving average of volume)?

Eugene

2/9/2009 12:46 PM

Here's a template that will buy once the second pullback in an established trend happens.

When you come up with your conditions of the trend, the pullback, the exit rule et cetera, all we have to do is to modify the code here and there:

CODE:
Please log in to see this code.

Size:

Color:

Here's a template that will buy once the second pullback in an established trend happens.

When you come up with your conditions of the trend, the pullback, the exit rule et cetera, all we have to do is to modify the code here and there:

[CODE]
using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;

namespace WealthLab.Strategies
{
	public class CECSJOY : WealthScript
	{
		protected override void Execute()
		{
			bool pullback1 = false;
			bool pullback2 = false;
			int pullback1bar = -1;
			int pullback2bar = -1;
			
			SetBarColors( Color.Silver, Color.Silver );
			PlotSeries( PricePane, SMA.Series( Close, 20 ), Color.Blue, LineStyle.Solid, 1 );
			PlotSeries( PricePane, SMA.Series( Close, 50 ), Color.DarkBlue, LineStyle.Solid, 1 );
			
			for(int bar = 50; bar < Bars.Count; bar++)
			{			
				// Uprend found, highlight bars
				if( inUptrend( bar ) )
					SetBackgroundColor( bar, Color.FromArgb( 10, Color.Green ) );

if (IsLastPositionActive)
				{
					Position p = LastPosition;
					if( CrossUnder(bar, SMA.Series(Close,20), SMA.Series(Close,50) ) )
						SellAtMarket(bar+1, p);
				}
				else
				{
					Position p = LastPosition;
					
					// Reset the pullback conditions when not in trend
					if( !inUptrend( bar ) )
					{
						pullback1 = false;
						pullback2 = false;
					}
					else
					// In uptrend
					{
						
						// Search for the 1st pullback...
						if( !pullback1 )
						{
							if( pullback( bar ) )
							{
								pullback1 = true;
								pullback1bar = bar;
								AnnotateBar( "1", bar, false, Color.Orange );
								SetBarColor( bar, Color.Orange );
							}
						} 
						// ...Found. Now wait for the 2nd pullback...
						else if( pullback1 )
						{
							if( !pullback2 )
							{
								// ...Found.
								if( pullback( bar ) )
								{
									pullback2 = true;
									pullback2bar = bar;
									AnnotateBar( "2", bar, false, Color.Red );
									SetBarColor( bar, Color.Red );
								}
							} 
							else if( pullback2 )
							{
								/* Now it's time to buy if 
								a) Volume is declining and
								b) The stock is near or at the moving average */
								if( volumeDeclined( bar ) & nearAverage( bar ) )
									
									// Scenario 1: Start pullback detection cycle over and over
									/*BuyAtMarket( bar+1 );
									pullback1 = false;
									pullback2 = false;*/
								
									// Scenario 2: Ignore subsequent pullbacks and just wait for entry
									if( BuyAtMarket( bar+1 ) != null )
									{
										pullback1 = false;
										pullback2 = false;
									}
							}
						}
					}
				}
			}
		}
		
		// Market in uptrend
		public bool inUptrend( int bar )
		{
			bool setupValid = ( Close[bar] > SMA.Series( Close, 50 )[bar] );
			return setupValid;
		}

// Pullback - price cross below moving average
		public bool pullback( int bar )
		{
			bool setupValid = CrossUnder( bar, Close, SMA.Series( Close, 20 ) );
			return setupValid;
		}

// Volume is declining
		public bool volumeDeclined( int bar )
		{
			bool setupValid = Volume[bar] < Volume[bar-1];
			return setupValid;
		}

// Near or At a moving average
		public bool nearAverage( int bar )
		{
			bool setupValid = 
				( Close[bar] >= SMA.Series( Close, 20 )[bar] ) & 
				( Close[bar] <= SMA.Series( Close, 20 )[bar] * 1.05 );
			return setupValid;
		}
	}
}
[/CODE]

gfparker

2/10/2009 9:59 AM

Eugene when I copy the script above and paste into WL5.1, the code all comes out as one line with no line breaks. Is there a better way to copy scripts into WL without having to pharse them once they are there.