Traders’ Tips by Technical Analysis, Inc.
• TRADESTATION: HOLDING OVERNIGHT POSITIONS
Anthony Trongone’s article “Holding Overnight Positions”
describes a trading strategy called rising darkness, in which
trade entries for the cubes (AMEX: QQQ) are based on the oneday
percentage change in QQQ price and a comparison of the
present day’s QQQ volume to historical volume.
Four different combinations of price and volume are used
as trade entry triggers. When certain conditions are met, this
strategy enters trades at the end of the day. (It should be noted
that Trongone’s article describes entering in the afterhours
market, though no exact entry time is specified.) The strategy
always exits on the following day’s open.
Our code for the rising darkness strategy has two user
inputs: “Sample Window” and “TradeType.” SampleWindow
sets the number of historical days to be used in determining
the relative rank of today’s volume. The user input
“TradeType” determines which of four possible entrygenerating
combinations of price and volume will be used.
Two versions are provided, one for daily bars and one for
intraday bars. A sample chart is in Figure 1.