Program 5 | Line break strategy


In tutorial 23 I created a program that simulated lines on a line break chart (such as a three line break chart). This strategy uses the techniques developed in tutorial 23 and program 3 to go long using a market order after a new set of 'up' lines begins and goes short using a market order after a new set of down lines begins.

Once in a trade the program has two targets which are user inputs. The targets are expressed as multiple of minimum price move (i.e. Target1 = Tgt1 * MinMove / PriceScale). The second target is incremental to the first target (i.e. Target2 = Tgt2 * MinMove / PriceScale + Target1). A LIMIT order to exit a user input number of contracts (FirstTgtCts) is set at Target1 and another LIMIT order is set at Target2.

The program also sets a trailing stop whose value is adjusted. Trailingstop orders are made using STOP orders.

User defined options are available to draw the target and trailing stop levels on the chart. If SHOWLINES input is set to FALSE, only today's targets and trailing stops are shown. If set to TRUE then historical targets and trailing stops are also shown.

To help you develop the strategy further I have added several filters in the program that you can modify to filter out trades based on your trading techniques. By default each filter is set to TRUE, but for example, if you only wanted to enter long trades when FastK( 14 ) was less than 20, you would edit the program and change:

FilterL1 = TRUE ;


FilterL1 = FastK( 14 ) < 20;

The video below explains in more detail how the program works and what the various inputs mean. Please be sure to watch it AND READ THE FOLLOWING DISCLAIMER before buying the program.