Tuesday, January 7, 2014

A Formula-Based Resolution

Writing custom formulas with the MetaStock Formula Language is a skill anyone can learn.  While some may find it easier because they have worked with  other software or have an affinity toward math or computers, this does not prevent others from mastering the art of writing formulas.  Yes, I did call it an art.  Formula writing is based in math and logic but it also involves structure.  The ability to not only write the formula but do so clearly is only gained through practice. 

As this is the start of a new year, when many are creating resolutions and goals, I thought I would suggest one for those interested in improving their formula writing ability:

Create a new formula at least once a month.

If you are at a loss for what to write, look in the MetaStock online Help and read about one of the indicators built into MetaStock.  Almost all include a text description of how the indicator is calculated.  Use that description to write a formula that performs the same calculation. 

Plot your indicator and the built-in indicator in the same chart.  I suggest making one a different color and then putting the both in the same window.  If you correctly created the formula, one will completely cover the other and you will only see one color.

I used this exercise when I started learning the formula language.  It is something you can do in your spare time.  You do not have trades waiting on this work so you should not feel pressured or stressed.  This is meant to encourage you to discover the formula language as learn more about the indicators.  If you get stuck, email what you have to the formula team at formulas@metastock.com and we will be happy to assist you.

To find out more about how the MetaStock team can assist you with formula writing visit our support section.

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