Proper use of Position.MarketPosition

[sburtt]

Hi,

a quick (and probably stupid question), how would this strategy behave? would it switch from long to short, and viceverse also if I use the Position.MarketPosition check?

if (Position.MarketPosition == MarketPosition.Flat && CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (Position.MarketPosition == MarketPosition.Flat && CrossBelow(Close,SMA(20),1)
{
EnterShort();
}

thanks

[DaveS]

Hi Sburtt.
I think if you re-write you code as below, it becomes a bit more obvious what will happen.
1) It will do nothing until you are flat.
2) It will then do nothing until one of the Cross conditions is true.
3) When one of them becomes true it will enter in the corresponding direction.
4) It will do nothing =more till you are flat again


if (Position.MarketPosition == MarketPosition.Flat)
{
if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}

[sburtt]

Hi Sburtt.
I think if you re-write you code as below, it becomes a bit more obvious what will happen.
1) It will do nothing until you are flat.
2) It will then do nothing until one of the Cross conditions is true.
3) When one of them becomes true it will enter in the corresponding direction.
4) It will do nothing =more till you are flat again


if (Position.MarketPosition == MarketPosition.Flat)
{
if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}

Dave thanks for your reply, this confirms what i was thinking, basically if I want is to switch from long to short on the SMA cross over, I don't think this will happen with the script you mentioned above. thanks

[DaveS]

What you have written -

if (Position.MarketPosition == MarketPosition.Flat)
{
if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}

Will get you in initally.
If you want to reverse at the crossovers then add -

if (Position.MarketPosition == MarketPosition.Short)
{
if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
}

if (Position.MarketPosition == MarketPosition.Long)
{
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}


NT does a lotot of the work for you, you don't need to close positions to reverse, just enter in the opposite direction and NT will close the old position for you

What you must do next is decide how to do the final exit.

[sburtt]

Wouldn't it be easier to use simply:

if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}

Without checking the maketposition? What arenthe risks with doing this?

[DaveS]

Wouldn't it be easier to use simply:

if (CrossAbove(Close,SMA(20),1)
{
EnterLong();
}
if (CrossBelow(Close,SMA(20),1)
{
EnterShort();
}
}

Without checking the maketposition? What arenthe risks with doing this?

No risks that I can think of, MarketPosition is often useful in more complcated scripts, but you don't really need it at all. The code in the quote would do the whole job I think.

[sburtt]

Thanks dave