Stocks & ETFs: conditions and indicators
1. Overview
Entry and exit conditions for stocks and ETFs are created in the "Seasonals & Signals" tab, with the buttons "Entry Conditions" and "Exit Conditions" above the table. A condition is available in all stock strategies and can be assigned to any number of rows.
It is assigned in the row itself: in the "Entry" or "Exit" settings it is selected under "Condition" (see Stocks & ETFs: strategy, entry and exit).
2. Filter and trigger
A condition is either a filter or a trigger:
- A filter checks at entry time whether a row may open. It only applies to rows with a schedule ("Every Weekday", "Specific Date", "Day of Month", "Day of Year").
- A trigger fires the entry or exit itself: the entry with "On Condition Only", the exit with "Until Condition". Exit conditions are always triggers.
A trigger fires when the condition changes from "not met" to "met". If "Activate if condition is met at entry" is set on an entry condition, the row also opens when the condition is already met. "Max./day" in the row and "Max. open Trades" of the strategy limit how many trades this creates.
The OptionsApp evaluates triggers at the start of each minute, and only during the regular session from 09:30 to 16:00 New York time. The basis is completed candles. If a condition cannot be evaluated, for example because there is no price data, it counts as not met.
"Webhook" is offered as a third type. For stocks and ETFs, however, a webhook does not open or close a trade.
The general filter and trigger logic is described in Entry & Exit Conditions.
3. The condition window for stocks and ETFs
A condition is built from left to right as with options: indicator, time frame ("Minute", "Hour" or "Day"), comparison (>, >=, <, <=) and comparison value. "Add condition" adds another line, linked with "And" or "Or". Below the lines, the condition is shown as a plain sentence for checking.
Three differences from the window for options:
- Instead of a choice of instrument, the window shows a fixed "Underlying". The condition always checks the stock or ETF of the row it is assigned to. A condition on another instrument, such as the VIX or an index, is not possible for stocks. In return, one condition is enough for many rows: "Close above SMA 200" checks each row's own stock.
- "Retry after trade canceled" is not available.
- Expected Move, Expected Move Consumption and Movement Since Trade Opening are not available because they are based on options.
4. The indicators at a glance
The calculation is the same as for options. Detailed explanations are in the linked articles; the examples there refer to options.
4.1 Value (price)
Compares a price of the stock in the selected time frame ("Close", "Open", "High" or "Low") with a fixed value ("Threshold"), a moving average or a range. Example: Close (Day) > 150 is met if the last daily close is above 150.
4.2 EMA
The exponential moving average weights recent prices more than older ones. It therefore reacts faster to trend changes than the SMA. Example: Close (Day) > EMA 50 (Day) only allows entries while the stock trades above its 50-day average. More: Condition: EMA.
4.3 SMA
The simple moving average weights all prices of the period equally. With "Close + Current" the current price is included. The best-known use is the 200-day line: Close (Day) > SMA 200 (Day). More: Condition: SMA.
4.4 RSI
The relative strength index measures the strength of a price move on a scale from 0 to 100. Values above 70 are considered overbought, values below 30 oversold. The default is 14 periods. Example: RSI 14 (Day) < 30 as an entry after a strong decline. More: Condition: RSI.
4.5 MACD
The MACD is the difference between two moving averages (default 12 and 26 periods). "MACD (Line)" is compared with the signal line "MACD (Signal)", "MACD (Histogram)" with a fixed value. Example: MACD (Histogram) > 0 shows positive momentum. More: Condition: MACD indicator.
4.6 ADX and DMI
"DMI (ADX)" measures the strength of a trend regardless of its direction. "DMI (+DI)" is compared with "DMI (-DI)" and shows the direction. Example for a strong uptrend: ADX > 25 And +DI > -DI. More: Condition: ADX / DMI.
4.7 Overnight Gap
The gap between the previous day's close and the first price of the trading day, in points or percent. This indicator is only available for entry conditions. Example: Overnight Gap (Percentage) >= 1 only opens if the stock starts trading at least 1 percent above the previous close. More: Condition: Overnight Gap.
4.8 Intraday Movement
The move since the open at 09:30 New York time, in points or percent. Example: Intraday Movement (Percentage) <= -2 catches a decline of at least 2 percent since the open. More: Condition: Intraday Movement.
4.9 Price Movement
The move within a look-back period in minutes ("Lookback", default 60), in points or percent. If the look-back reaches back past the open, the last minutes of the previous day are included. Example: Price Movement (60 minutes, Percentage) > 1. More: Condition: Price Movement.
4.10 Max/Min Day Range and Breakout
"Max Day Range" and "Min Day Range" determine the high and low of the stock within a time window of the trading day ("Start Delay" and "Duration" in minutes). If the price rises above the high of this range, an upside breakout is met. "Breakout", by contrast, compares with the high or low of the last candles ("Lookback"). Both are mainly useful as triggers with "On Condition Only". Example: Close (Minute) > Max Day Range with Start Delay 0 and Duration 30 gives a breakout from the range of the first 30 minutes. More: Condition: Max/Min Day Range.