Originally Posted by
pdp-brugge
Lisa,
The VSTpro uses a MA te detect his market direction.
If the MA goes down 2 days in a row and the close is below the MA and the high was above the MA, then the VSTpro will signal a SHORT signal.
It will remain SHORT until a LONG signal is given.
A LONG signal is given by the VSTpro if the close is above the MA and the low is higher then the low of the previous day.
That's basically it.
There are a few extra tests to avoid whipsaws but these are, to my knowledge, just cosmetic.
The trick is to find the right MA for the instrument in question.
My experience tells my (through back testing) that a 14 days simple is the best for the S&P500 index.
I hope this will satisfy your hunger for knowledge
PdP
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