An interpretation of the Flat Base Breakout (FBB) trading system prese 0

Posted on 17, June 2013

in Category SID


Description for FlatBaseBreakou SID 233

An interpretation of the Flat Base Breakout (FBB) trading system presented by Bill Pritchard in the January 2006 issue of Technical Analysis of Stocks and Commodities magazine.

An interpretation of the Flat Base Breakout (FBB) trading system prese/sid Notes for this Trading Account:

An interpretation of the Flat Base Breakout (FBB) presented by Bill Pritchard in the January 2006 issue of Technical Analysis of Stocks and Commodities magazine.

The Flat Base Breakout generates few signals so should be used against a portfolio of stocks. The portfolio that comes with this trading system contains the symbols MAGS, IPIX and CALM. These symbols were used in the original article.

Smaller cap stocks work better than large cap.

You’ll need to extend the barsback of the daily timeframe to at least 63 bars.

An interpretation of the Flat Base Breakout (FBB) trading system prese/sid Rules for this Trading Account:

An interpretation of the Flat Base Breakout (FBB) trading system prese/sid Notes for this Trading System:

An interpretation of the Flat Base Breakout (FBB) presented by Bill Pritchard in
the January 2006 issue of Technical Analysis of Stocks and Commodities magazine.

An interpretation of the Flat Base Breakout (FBB) trading system prese/sid Rules for this Trading System:

An interpretation of the Flat Base Breakout (FBB) trading system prese/sid Bar event logic:

#An interpretation of the Flat Base Breakout (FBB) presented by Bill Pritchard in 
#the January 2006 issue of Technical Analysis of Stocks and Commodities magazine.

#This system performs better when system order options are checked:
#  Allow Multiple orders per symbol
#  Implicit One Cancels All (OCA) per symbol

unless (Position) {
  #no position - testing the entry rules
  #Daily close for today is greater than maximum close over 60 days,
  #starting yesturday
  if (ClosePrice>Yesterday(Highest(Close,61))) {
    #The daily close is less than $50 and greater than $2
    if (ClosePrice<50 and ClosePrice>2) {
      #The daily close for today is greater than daily open for today
      #and the closeprice for today is greater than the close for yesturday
      if (ClosePrice>OpenPrice and ClosePrice>Yesterday(Close)) {
        #Daily volume for today is greater than or equal to minimum volume 
        #over 60 days (starting today) multiplied by 5
        if (Today(Volume) >= Today(Lowest(Volume,60))*5) {
          #Daily volume for today is greater than or equal to daily volume
          #for yesturday multiplied by 3
          if (Today(Volume)>=(Yesterday(Volume)*3)) {
            #63-day exponential moving average of volume for yesturday is less
            #than or equal to 500,000
            if (Yesterday(EMA(Volume,63))<=500000) {
              #Mark this bar on the chart
              Markbar(Red);
              #Place a buy stop order for the daily high price plus 25cents
              #We leave money management/position sizing upto the money management
              #object
              BuyStop(HighPrice+0.25);
            }
          }
        }
      }
    }
  }
}
else {
  #we have a position perform exit logic
  #Maintain a stop loss of 7% below the entry price
  PlaceStopLoss('7 Percent',EnterPrice-(EnterPrice / 100)*7);
  #Sell on the open if the 3 bar EMA crosses under the 6 bar EMA
  SellOpen if Crossunder(EMA(Close,3),EMA(Close,6));
}

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