In Tradeworks, a signal is fired when there has been changes in the market matches the constraints described in a Signal Rule.
To add signals to your strategy, when in the Strategy Editor, click on the Signal Rules button.
This will open the Rule Editor screen, as shown below.
Standard features of the Entry Signal editor
When adding or editing any signal rule you can:
- Duplicate the rule: This is useful if you wish to have a similar rule and change only a few settings. For example, you may have a signal that fires when a fast moving average closes from below to above a slow moving average. By duplicating this rule, you can simply change the operate from below to above to from above to below to have an opposite direction signal.
- Enable or Disable the rule: The can be useful if you have a signal rule that you would like to temporarily remove from a strategy. Rather than deleting it, you can disable a rule, and then re-enable it at a later stage.
- Delete permanently removes a rule from your strategy.
A signal rule is a collection of conditions, or comparisons. You can compare any of the following:
- Indicators, and their specific values
- Symbols - you can compare Ask or Bid of one symbol against any other value, including other symbols.
- Values - you can add specific values or amount, for example, a pivot point value.
- Bars - Tradeworks allows you to compare bar values with any other available values list above. Currently, the available bar values are:
- Previous Bar:
- Current Bar
To write a rule that uses an indicator, you will need to have already added at least one indicator to your strategy. If you have one or more indicators added to your strategy, they will show in a drop down list once you click on the Indicator button on the Rule Editor screen.
You may also choose "Add indicator" from the drop down.
Once your chosen indicator is selected, you should then choose which specific value from the indicator you wish to use in your rule (if applicable).
Logic, sometimes referred to as Operator, is the type of comparison. Tradeworks includes the following:
- Greater than / Less than
- Greater or equals than / Less or equal than
- Equals / not equals
- Crosses rules - this is comparing how a value changes over time, in relation to another value. This is a powerful feature that is useful for writing rules like “when the moving average crosses from above to below the EURUSD Ask”.
- Crosses from above to below and Crosses from below to above. For more information on the Crosses operators please see Crosses Comparisons and Indicator calculations.
- And - this joins one rule condition to another. Rules that have And are less likely to activate they have more conditions that need to be met before they can be considered true.
- Or - this is an alternate condition.
- Before - current condition comes before the following condition
- After - current condition comes after the following condition
A signal can have the following advanced settings:
- Signal Throttling allows you to put a time limit between the first and when it can fire next regardless if the rule condition is true. This can be useful if you would like to write a rule that would continue to fire, for example, every 5 minutes when the Bid is above the upper Bolllinger Band.
- Trading Sessions allow you to set your signal rules to be active during a particular trading session.
By default, signal rules are enabled on all trading sessions. To change this, click on the link and select a trading session. Then save your rule. Now, this rule will be active when your selected trading session is active.
Multiple Entry Signals
Required. Your strategy must specify a Multiple Entry Signals rule.
These are settings that determine:
- If your strategy can hedge (must be supported by your broker)
- And how aggressive you trading strategy is. Do you close your current position, and open a reverse position, or do you simply close your current position?
Multiple Entry Signals is found under Money Management.