MarketScan
Article: How to Trade with MarketScan

The traditional philosophy of knowing when to enter a stock is only as good as knowing when to exit a position. This is important to maximize your gains and minimize any losses. Gaining a system showing both entry and exit is possible in MarketScan by designing your own separate entry and exit strategies based around multiple criteria.

For example: A momentum trader looking to enter a viable position with certain fundamental criteria can compliment this entry search with a follow up filter search which identifies getting out of a security in the list at the appropriate time.

Here’s an example of Entry Search:

Type = Equity
Capitalisation > 100000000
Volume > 50Day AverageVolume * 2
LastPrice > TwentyOneDayMovingAverage
LastPrice > ThreeMonthHigh

Run the scan. Once you have reviewed the securities and are content with entering positions on these, delete stocks you do not intend to enter into positions with, then save the list and record a Date in the List’s name. For Example:

Momentum Entry List 1/12/02

To determine the Exit Strategy you have a number of decisions to make regarding the profit margin, or the loss stop, or even the turn back of a security (trailing stop). Once you make these decisions you can apply a Filter approach over the list on an hourly, daily or weekly basis and this will give you an indication of exit by displaying those securities of the original list which meet that exit criteria.

For example, on the list we created above, we may have decided to take 3 entry positions. After a suitable period, lets say 2 days, you would recall the list and run a Filter search to provide the exit. By clicking ‘Filter Securities’ you can now select:

LastPrice < 21Day moving average

This will identify those stocks from your holding list where the stocks have had a pull back and indicating the securities to exit at this time based on the criteria of your choice. You may find the Filtering does not change the Security list which is your confirmation to continue to hold the positions of the list.

The ability to build varying searches meeting individual requirements is now further enhanced by helping you build corresponding review or exit strategies on the outcome of your lists.

* Information provided by Paritech is not to be taken as Securities recommendations or Investment advice.