My first test with the VST

I downloaded the free VST in early June, and after about 6 weeks of viewing charts using the ATR band entry/exit template, I decided to subscribe to LearnMetaStock web site. I down loaded the VST-LMS version which would allow the entry of my own entry/exit formula.

Being able to use your own criteria for entry/exit signals opened up the VST, and I am now able to test a vast range of indicators and instantly view the results.

Some of the test results were surprisingly bad.

After double checking the VST results manually with a pen, paper and calculator the VST was spot-on. I then looked at the chart’s buy/exit signals a little closer, and found some charts had one to several, large losing trades. (Would the trader have taken these losing trades? Looking at some of the charts and the price action at the time the trade was taken, I think not.)

Some systems require discretion by the user, and are not 100% mechanical. I viewed a video presentation at the LearnMetaStock web site on how to trade with the RMO, and it explains how to use your own discretion when taking the buy/sell signals-very helpful.

I will post charts to this blog as I test different strategies.