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OK, that's what I thought you meant. One way
to avoid "stop running" by crooked market makers is to compare the
CLOSING price to the stop level, and if it is exceeded, then exit next
morning on the open (or within 15 minutes of the open) on either a
market or limit order. That way, you wouldn't be playing the game as if
your cards were exposed and the market maker's was not. BTW, the idea
of setting your stop 1 tick above or below a high/low or
resistance/support level works better with futures since a tick is
different for each commodity (so you don't have to worry about a tick
being different for a $100 security vs. a $500 security).
Fred wrote:
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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> >
> > * To unsubscribe from this group, send an email to:
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> >
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> >
> >
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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