Requires installed MS123 IndexDefinitions Library extension
This strategy is based on applying a custom market breadth filter to help identify periods when underlying dip-buying system has an edge.
Before running the Strategy:
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Install MS123 IndexDefinitions Library
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Restart Wealth-Lab
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Open the Index Manager (Tools menu), create a new index using "New High New Low Ratio" with period = 20
Strategy rules:
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Buy tomorrow at the open if the 10-day simple moving aver-age (SMA) of the 20-day NHNL ratio of the Active Trader Standard Portfolio falls below 0.2 and the stock’s low price has been declining for three days in a row or more. (Multiple positions are allowed.)
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Sell tomorrow at the open after holding the position for five days.
Note: When there is not enough capital to take trade every signal, trade stocks with the low-est current closing prices.