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Re: [amibroker] Dumb Question on Stop Losses and Ticks



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What predicament? If you use a stop you'll want to be stopped out, no?
Some people advocate not using stops in systems. It's up to you.
I use very wide stops on day 1 and bring them in closer on subsequent days.
G

zoopfree@xxxxxxxxxxx wrote:
> This may be a dumb question so please bear with me. I continue to learn 
> AmiBroker and build my system in an offline mode as I study historical 
> Forex data.
> 
> I plan to trade on 15-minute bars. My system relies on placing a Stop 
> Loss at 10 pips below an entry price on a Long position. However, I 
> noticed on the historical data that the difference between a Low and 
> Close price on some bars can be as much as 35 pips! Does this 
> essentially mean that my stop loss can be activated by the "price noise" 
> of the tick data, as a 15-minute bar gets built in real time? Placing my 
> stop below this noise level, say at 40 pips, would screw my system and 
> could result in unnecessary losses. I have also heard that some 
> unscrupulous brokers can use price noise and spreads to "force" 
> artificial activations of stops.
> 
> Is there any way around the above predicament? Instead of using an 
> actual stoploss command, can one somehow force a sale of a Long position 
> when the close of the last bar is 10 pips below entry by hard coding a 
> sell rule? Or would that simply be considered a stoploss by the broker, 
> making it susceptible to being taken out by price noise?
> 
> Thanks!
> 
> =====================
> Posted through Grouply, the better way
> to access your Yahoo Groups like this one.
> http://www.grouply.com/?code=post
> 
> 
> 
> 

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