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Two different people and two different experiences.
I will admit that gunning is now much reduced versus 6 years ago.
Phsst
--- In amibroker@xxxxxxxxxxxxxxx, "Fred" <fctonetti@xxxx> wrote:
> Phsst,
>
> I have in the past traded stocks for a couple of decades. Gunning
> for stops as you call it is a real practice that does happen. The
> tighter they are the more it's likely to happen. With regards to
> placing actual .vs. having mental stops you asked me for what
> practice if any I would use and I replied as such. What you do is
> entirely up to you.
>
> Fred
>
> --- In amibroker@xxxxxxxxxxxxxxx, "phsst" <phsst@xxxx> wrote:
> > Many of us approach trading system development with blinders on.
> What
> > I mean by that is that we instinctively limit ourselves to our own
> > poorly constructed preconcieved ideas, or we are leashed to
> > "conventional wisdom" (which can be a real killer). When shackled by
> > blinders, we do not use AmiBroker to its full capabilities.
> >
> > EXAMPLE:
> >
> > Earlier this week Jayson replied to a sample trailing stop post I
> > made. Jayson pointed out that the fixed stop level of the previous
> > days Low minus .50 would probably work better with a variable amount
> > based upon the Tickers underlying price. For the record, I've
> > backtested many variable level stop loss systems and the best single
> > stop loss level I have is a fixed amount for all Tickers and issue
> > prices. FWIW... minimize your own assumptions about what SHOULD
> work,
> > and be flexable enough to go against your instincts.
> >
> > And this week Fred (who only trades MF's, not stocks) expressed the
> > very strong belief that only mental trailing stops should be used
> > because Mkt Makers have a reputation for 'gunning stops', and that
> > placing actual stop loss orders is the equivilent of hanging a sign
> > around your neck saying "SUCKER" (my interpretation of Freds post).
> >
> > All I can say is this:
> >
> > I trade stocks. And I have quite a bit of experience doing it...
> > profitably. I use actual stop loss orders AT ALL TIMES! Sure...
> I've
> > been the victim of 'gunning the stops' a few times. But much more
> > often I've seen stock price action come within a penny of my stop
> > before reversing and making me even larger profits.
> >
> > I use Limit orders to open positions, and you might assume that when
> > unusually bad news or adverse rumors occur before market open on a
> > stock that I have a limit order in place on that the MM's would hit
> my
> > limit price BEFORE dropping the price, right? NOPE... I can't tell
> you
> > how many times I've placed limit orders the night before and had
> > adverse news or rumors gap the price against my intended position
> and
> > I almost always get executed AFTER the gap has occurred, either
> buying
> > lower than I specified or shorting higher than I specified. And I
> feel
> > pretty sure that after all the dust has settled, I've actually
> > profited from these situations because the actual OPEN is usually
> the
> > worst price of the day.
> >
> > My point is simply this... try to rise above your preconcieved
> notions
> > or 'conventional wisdom'. Backtest every situation. Analyze, Analyze
> > and then analyze some more. Then if it still looks good but you
> > continue to be suspicious then make small trades just to see what
> > happens. You might be risking a few bucks only to learn that you've
> > got a good tradable system.
> >
> > If you disagree with the above and you have stock trading experience
> > then OK. But if you disagree... and you have no stock trading
> > experience... then think carefully.
> >
> > Another point... When I worked for others, some of the most
> > significant career accomplishments came from ignoring conventional
> > wisdom and probing all avenues for solutions.
> >
> > And earlier this week someone posted that they had the book 'Street
> > Smarts' which is where I got my idea for the 'Holy Grail' trading
> > system. They said that they had programmed the Holy Grail system and
> > it did not work. I can easily believe that because it did not work
> > for me either as it was posted in the book. It took weeks of
> gyrations
> > using logical derivitives of the trading system before I gradually
> got
> > it to work. So if a trading system idea seems to make sense to you,
> > don't give up too early.
> >
> > Finally this negative observation... For years I looked at charts
> > using the RSI, Stochastics and MACD indicators and thought to myself
> > that "They ought to work" in a mechnical trading system. But after
> > years of playing with those as the primary indicators I still have
> not
> > come up with anything significant.
> >
> > Phsst
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