ActiveTrader 2012-09 | Custom Market Breadth (NHNL Ratio) by Eugene

Requires installed MS123 IndexDefinitions Library extension

This strategy is based on applying a custom market breadth filter to help identify periods when underlying dip-buying system has an edge.

Before running the Strategy:

  1. Install MS123 IndexDefinitions Library
  2. Restart Wealth-Lab
  3. Open the Index Manager (Tools menu), create a new index using "New High New Low Ratio" with period = 20

Strategy rules:

  1. Buy tomorrow at the open if the 10-day simple moving aver-age (SMA) of the 20-day NHNL ratio of the Active Trader Standard Portfolio falls below 0.2 and the stock’s low price has been declining for three days in a row or more. (Multiple positions are allowed.)
  2. Sell tomorrow at the open after holding the position for five days.

Note: When there is not enough capital to take trade every signal, trade stocks with the low-est current closing prices.


Author: Eugene
Category: Intermarket
Creation Date: 8/7/2012
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"
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