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Hi b519b,
> I am working on a market timing indicator for identifing/predicting
> changes in the market trend and at this stage of my work, I am more
> interested in getting a high win percentage for the indicator.
IMO good entry depend on good exit - if you want have good entry
signal you must work on good exit signal in the same time. Look at
the jpeg in the attachement and answer: is my entry signal good or
bad? (Hmm... how to send a picture via Yahoo???)
Usually I use trailling stops where I set how many % I can loss of
the highest value after buy; for futures you may use an multiple of
ATR. But there is always problem: higher drop help stay in trend, but
it weakly save profit; lower drop can earlier eject from trend. To
prevent, we can use parabolic trailing stops or use value of
acceptable max drop who depend on time after buy - there are a lot of
solutions.
Cheers
--
Witold Dabrowski
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