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Harvey,
You didn't screw up anything. On the contrary you did a superb job. Thank
you so much. It's great in helping me to learn to play and starting to feel
the power of the man with the bowlerhat.
You already see it coming......
BUT...as over 90% of the charts I applied it with look good suddenly there
is this defect sneaking in...
On the DowJones Industrials dates 10 and 11 Nov 97' and Dec 12 '97 the
Uptrend condition, C>FmlVar("Trading the Trend","HiLimit") is true but the
color of the bar is red while it should be blue !! Values for
trading-the-trend-indicator on 10 Nov:7531.31, Close: 7552.59 on Nov 11:
7504.37, Close 7558.73 and on Dec 12: 7677.98, Close 7878.30
(Hey, that close is higher than today's. What happened? Thought we all
agreed we would go up forever.....<GG>)
There are a few more examples I could give you.
What's going on ? Did I do something wrong ? Is my cpu making mistakes ? or
is it in MS 6.5 ?
Could you and the rest of the list who is interested (EQUIS-support??) check
this out.
Regards
Curious Frans
(At 17:29 1-09-98 -0700, you wrote:
>John/
>
>An article in the September 1998 TAS&C, "Trading the Trend" by Andrew
>Abraham, was about one form of stoploss exit: subtract some manipulation
>of the true range from the highest high (or add it to the lowest low)
>and exit when the close crosses that. Members of Chuck LeBeau's Traders
>Club will recognise the "Chandelier Exit".
>
>Here's my version of it (for MS v 6.5). I've written it this way to
>make it easy to change the lookback periods and the multiplier.
>
>Name: Trading the Trend
>
>Pds:=21;
>Mult:=3;
>TruRan:=Mov(ATR(1),Pds,W)*Mult;
>HiLimit:=HHV(H,Pds)-TruRan;
>LoLimit:=LLV(L,Pds)+TruRan;
>If(C>HiLimit,HiLimit,LoLimit)
>
>1. After closing the Indicator Builder click on the Expert Advisor (the
>guy in the bowler/derby hat).
>2. Click on New, then the Name tab, type in Trading the Trend.
>3. Click on the Highlights tab, select the first line so that it is
>highlighted, click Edit, type in the name Uptrend, select Colour Blue,
>select Condition, type in C>FmlVar("Trading the Trend","HiLimit"),click
>OK,
>4. Still on the Highlights tab, select the second line, click Edit,
>type in the name Downtrend, select Color Red, select Condition, type in
>C<=FmlVar("Trading the Trend","HiLimit"), click OK, click OK again.
>5. If you have a chart open that you want to use this on, click Attach,
>otherwise click Close. In the latter case, when you open a chart and
>plot the trendline, click on the Expert Advisor, select Trading the
>Trend, and click on Attach.
>
>I've given the Expert steps in detail for any who may not be familiar
>with its use. To experiment with variations in the lookback periods and
>the multiplier you can do so in either the Indicator Builder, or
>right-click the indicator on the chart, select Properties, then the
>Formula tab, and make the changes (e.g. try a lookback period of 10, and
>a multiplier of 2.5). As implemented above, the Expert should change
>accordingly. This shows the trade-offs that have to be made between
>near and distant stops. This is too rudimentary to be traded as a
>system - the whipsaws would chop you to pieces - but the exits should
>help to limit drawdowns.
>
>A very similar stoploss is given in Chande & Kroll "The New Technical
>Trader", pp.167 - 169, "Volatility-Based Trailing Stops". My preference
>is to plot both the high and the low exit lines in contrasting colours,
>dispensing with the switch between them, and dispensing with the
>Expert. If anyone wants help with the code, just say so. And if I've
>screwed something up again, say so.
>
>Harvey Pearce, Victoria, B.C., Canada
>=====================================
>
>
>John Manasco wrote:
>>
>> After reading several posts recently by some new and old participants in
>> the list I would like to start a discussion of my favorite subject,
>> namely loosing money. It seems there is a lot of confusion about when to
>> get out of a stock or commodity. Most of that confusion is between my
>> ears.
>>
>> First when you purchase a stock or commodity when do you pull out if the
>> position moves against you? Second, how much do you let your position
>> fall thinking that it's just a retracement a will continue the move?
>> Could someone explain how to use stops properly? Especially trailing
>> stops. Do I need em? I am getting mad watching my profits evaporate and
>> go into losses.
>>
>> Last week I went flat in my portfolio. I sold all my stocks and kept all
>> my option straddles. Then I fretted all week that I had missed the
>> bottom and would miss the next up move. That's when I realized I have
>> too much emotion involved in my decisions. I have always said I don't
>> have a good exit strategy but I didn't realize just how much my emotions
>> were playing into it. Now I question my entry strategy too, and that's
>> pretty much mechanical. The subjective part is whether or not to
>> actually put the trade on.
>>
>> Everyone tells me about fear and greed dominating trading decisions. I
>> also think I have listened too long about my time frame and goals. I
>> have been investing for ten years and trading for maybe five. Over that
>> time people have told me to invest for the long run, let my profits
>> ride, don't be swayed by short term blips, decide what time frame I want
>> to trade and all the other admonitions about trading. This has served to
>> confuse me more than help me as I made the transition from investor to
>> trader.
>>
>> So I admit it, I sometimes lose money because of my exit strategies. A
>> lot more than I would like to admit. So what are some of your thoughts
>> on exiting a position. I really hope I get a lot of feedback on this
>> because this is really important to me, and it seems to a lot of other
>> people too.
>>
>> John Manasco
>
>
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