Wednesday, June 4, 2014

thinkscript included: sdi_psarstgy rev. 1.1.0

this release of sdi_psarstgy, a study that simulates trading the parabolic stop-and-reverse indicator, includes an improvement and a bug fix. the improvement is a chart label that reports the win% and the number of trades evaluated. the fix is a correction for trade price when a stock gaps through the psar price. 

here's the picture of this new revision at work:
sdi_psarstgy on dks which gapped below the psar price on earnings and then gapped above the psar on 5/30
previously, when a stock gapped above or below the psar price, sdi_psarstgy would simulate a reversal trade at the psar price. this was incorrect because equities often never trade at the psar price on a gap day. now, when an equity gaps through the psar price the reverse trade is simulated at the open price instead of the psar price.

as always, the updates to scripts are maintained on the original post for the script which you can find here.

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