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Metastock Indicator Formula
Bang For Buck (Variable - Option 2) – Default 200 Day Moving Average of ATR
Value1:=Input("Position Size $", 1000,1000000,10000);
Value2:=Input("A.T.R. (# Periods)",1,200,1);
Value3:=Input("Moving Average # Periods",1,1000,200);
((Value1/CLOSE)*Mov(ATR(Value2),Value3,S))/100
Note: The Use Of "Bang For Buck" is spoken about in Chris Tate's Book "The Art of Trading" and
this is where I originally came across the formula. It says in the book that it originally
came from Nick Radge, of Reef Capital and author of "Every Day Traders". Chris Tate's book is
reviewed in the Book Review Section of our site and Nick Radge's book will be reviewed as soon
as I read it!
I take a quote from Chris Tates book to explain the use of the bang for buck, as it is not really an
indicator as such. The quote is apparently from Nick Radge who introduced the concept.
"This is not a trading system or stock-picking method. It's a selection filter to use
when faced with multiple buy signals and not enough capital to fund them all." (Tate,C. 2001,The Art
of Trading: a complete guide to trading the Australian markets, Wrightbooks, Milton)