Why does the code not provide a signal?

• 07/04/2017 at 1:12 PM #39783
  EB

  Hi,

  I a struggling with the fact that the stochastic does not always give a signal. I don’t understand why. Here is the simple code:

  atr2 = averagetruerange[14] IF NOT ONMARKET THEN c2 = Stochastic[5,3](close[1]) < 20 IF (c2) THEN BUY 1 CONTRACT AT MARKET SET STOP LOSS atr2*5.5 SET TARGET PROFIT atr2*2.5 ENDIF ENDIF signal = c2 graph signal

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

  atr2 = averagetruerange[14]   IF NOT ONMARKET THEN   c2 = Stochastic[5,3](close[1]) < 20   IF (c2) THEN BUY 1 CONTRACT AT MARKET SET STOP LOSS atr2*5.5 SET TARGET PROFIT atr2*2.5   ENDIF   ENDIF   signal = c2   graph signal

  It says buy when the stochastic is below 20. The thing is that sometimes it provides this signal, but sometimes not. I don’t know why. See attachment. I should expect that at 10.35 hrs, 14.20 hrs and 16.45 hrs it would provide a buy signal.

  Can anybody tell me why this is not the case?

  Thank you,

  Edward

  

  EB

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  07/04/2017 at 1:22 PM #39785
  Nicolas

  Your attachment is empty. If you want to add picture, just upload them in any supported format such as .png .jpg, etc..

  The problem in your code is that your are only storing value of the stochastic condition into your c2 variable when you are not on market. You should test your condition outside the “onmarket” conditional block.

  

  Nicolas

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  07/04/2017 at 3:00 PM #39794
  EB

  Hi Nicolas,

  Thank you for your quick reply. Ok, so I should not use the onmarket conditional block. That indeed seems to be the issue here. And use DEFPARAM Cumulateorders = False.

  Edward

  

  EB

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