First scan

[jtnewell]

Hi Chris,

I wonder if we could "collaborate" on our first scan (meaning MY first scan of course). I think it would be helpful to understand the program's capabilities better... at least for me.

Anyway, here's a simple one to begin. Larry Connors calls it his Double 7s strategy and here are the rules...

Entry – a) symbol is > 200-day SMA and, b) closes at a 7-day low.

Exit – symbol closes at a 7-day high.

I also prefer liquid stocks (avg dly volume > 250k) that are above $10/share.

thanks,
Joe

[Chris White]

Hi Joe,

Ah yes - a classic Connors' strategy: Ensure long term strength using the 200 MA and then buy on pullbacks which in this case is defined as the lowest close in the last 7 days.

In EdgeRater you would write 2 ChartScripts for this: 1 for the entry rule and 1 for the exit rule

Entry:

Code: Select all

Cond1:= C > MA(C, 200);
Cond2:= C == LLV(C, 7);

Event: Cond1 & Cond2;

Exit:

Code: Select all

Event: C == HHV(C, 7);

You have to be a bit careful in how you interpret the wording. For instance in your description

b) closes at a 7-day low.

you could take that to mean "look for a close price which is the low of the last 7 days" which would require it to close on the exact low of the day and for that value to be the lowest value in the last 7 days.

Or, you could take that to mean "look for a close price which is the lowest close in the last 7 days". That's the interpretation that I used in the above Entry script.

For a challenge you could modify the entry script to follow the alternate interpretation. You will find that there are *many* fewer entries in that case.

For your other conditions of Volume > 250K and Price > $10/share you don't have to write script code for that. Because these are very common filtering criteria they are included in the menu options on the Entries and Exits tab:

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