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No ... I'm not saying I don't like profit stops per se ... I'm saying
I've never liked POINT oriented anything except possibly for some
types of entires and exits where they are oriented to 1 tick
over/under high/low ... People who develop these sorts of things are
usually focused on very small time frames as a point on the NDX for
example means something very different when the NDX is at 1000 or
5000. Additionally whether or not ANY type of stop or profit taking
makes for a better system imho needs to be part of backtesting. In
some systems these techniques are a plus and in some they aren't. As
far as stops in general go ... what works in the sterile environment
of backtesting doesn't always work when actually placed in the market
as this is roughly equivalent to playing some card game with yours
face up.
--- In amibroker@xxxxxxxxxxxxxxx, Al Venosa <advenosa@xxxx> wrote:
> Fred:
>
> I think what you are saying is that setting monetary stops (i.e.,
stops
> based on hitting a price target based on a percentage or point
move) is
> for the birds but setting stops based on some TA pattern (support
or
> resistance levels) makes more logical sense, right? I'm talking
more
> about stopLOSSES rather than PROFIT stops.
>
> Al Venosa
>
> Fred wrote:
>
> >
> > One would I think ?! need to demonstrate whether using some
> > methodology to take profits off the table or not was better or
worse
> > than its counter part in some system. For any given system it is
> > imho not clear at all which route is better without seeing the
> > trades, which there are hopefully enough of to perform a valid
> > examination, and then determining which method is superior and
why.
> > As far as n-point profit targets or stops goes imho they're for
the
> > birds ... this type of thing either works with percentages where
the
> > same meaning is implied if the tradable is at 50, 500 or 5000 or
they
> > aren't worth bothering with.
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "yukitaga" <yukitaga@xxxx>
wrote:
> > >
> > > Someone who shall remain nameless tossed out this gem for
serious
> > > consideration (watch the line wrap):
> > >
> > > > Is exiting a portion of your trade before your profit target
is
> > > > hit a viable strategy?
> > >
> > > (watch the line wrap)
> > >
> > >
> >
http://www.traders.com/Documentation/FEEDbk_docs/Abstracts_new/Passam
> > > onte/Passamonte.html
> > >
> > > The guy who wrote this is a real kick. ^^_^^ First, he begins
his
> > > article with an invocation to the sanctity of mathematics,
which I
> > > don't really have a problem with. But then he proceeds to set
up a
> > > straw man using statistics, which Mark Twain had a commentary on
> > > something to the superlative of 'damned lies'.
> > >
> > > (If you have never read "Letters From The Earth" [Mark Twain],
you
> > > are missing one of the great satirical writings in the English
> > > language. I don't literally ROTFLOL very often, but I did many
> > > times when reading that book.)
> > >
> > > The whole *point* of taking something off the table before some
> > > profit target is hit seems to be beyond this self-
> > > proclaimed "professional trader" who (I paraphrase) doesn't
bother
> > > with a "few points" on the S&P, but who holds out for 5 to 10
> > points
> > > or more on every trade.
> > >
> > > I'm impressed . . . ^^_^^ No, really! ^^_^^ I love taking the
> > > other side of the trade against people who know where the
market is
> > > headed before it arrives there, and who aren't going to take
> > > any "nonsenese" from the market if it happens to disagree.
> > >
> > > But this God's gift to trading doesn't even seem to understand
that
> > > one RAISES THE STOP when one takes a partial profit on a
position.
> > > The whole point, the only point, and the point that counts is:
> > > DEFENSE. That is why one takes partial profits. One does not
do
> > it
> > > attempting to maximize profits, but to protect capital.
> > > Maximization of profit is wonderful. Hey, I'm all for it. But
> > only
> > > AFTER the defense is set up. Before that, the whole idea is
> > > balderdash and hooey gooey poppycock. Perhaps someone else has
> > > better and more modern adjectives. My English is dated. In any
> > > case, defense first, and anyone who doesn't play that way is
dead
> > > meat in this business.
> > >
> > > But the silly little argument with charts in that article has
> > > someone taking a profit, then leaving the stop below breakeven.
> > >
> > > Duh! Gee, I wonder why the math works out like that? *_*
> > >
> > > Sorry, but I just couldn't let that little bit of 3-card Monty
go
> > > without a challenge.
> > >
> > > Yuki
> >
> >
> >
> >
> >
> > Check AmiBroker web page at:
> > http://www.amibroker.com/
> >
> > Check group FAQ at:
> > http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> >
> >
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> >
> >
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