Last week’s system variation included a programming error which led to trades on the signal day instead of a delayed entry. Unfortunately since the Trade Entry date was identified as a delayed entry on the Trade Listing page, I didn’t catch it until I was reviewing option prices for the period. I apologize for any time spent trying to program these results. I did confirm that the OASIS results obtained using the basic system were valid.

Since the system produced trades with entries at the open on the day the signal was generated, the 6-year back-test results were great. The trade was taken right before a strong momentum move. It’s like having tomorrow’s paper today. While it’s interesting the system can be programmed to enter a position prior to the actual signal being generated, I’ll keep the focus on testing entries and exits that occur post-signal.

Another issue that was noted when reviewing the results was a problem with the exit price. Although the close price was identified as the exit criteria for the system, the actual price used in the trade listing included the highs or lows for the day, not the close. So when checking Trade Lists and Exported results, be sure to verify that the entry and exit prices correspond to the trade date listed and whether open, close or highs/lows are used. I believe I’ve only encountered these issues when the Signal Day is used rather than the Entry Day or Exit Day.

I’ve been re-testing a variety of periods and entries and will provide results with option data in next month’s Analytical Toolbox. In place of today’s system article, I will have a second article which includes a market outlook posted today. I felt the issue warranted an article with a separate heading.

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Clare White, CMT
Contributing Writer and Options Strategist
Optionetics.com ~ Your Options Education Site
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