RE: ATR stop or DEVSTOP

["mikelu" <mikelu@xxxxxxxxxxxxxxx>]

Here's what I think a DEVSTOP is in Metastock language, described in Kase's
"Trading with the Odds", and better described in Kaufman's "Trading Systems
and Methods". It uses a 2-day range, calculates an average range and SD of
the range, and then draws 4 lines below the high, at 1 range and 0,1,2, and
3 SD's. "2.2" and "3.6" are corrections for skew of the distribution.

AVTR:=Mov(HHV(H,2) - LLV(L,2),20, S);
SD:=Stdev(HHV(H,2) - LLV(L,2),20);
HHV(H-AVTR-3.6*SD, 20);
HHV(H-AVTR-2.2*SD,20);
HHV(H-AVTR-SD,20);
HHV(H-AVTR,20);

Mike

-----Original Message-----
From: Mike Lucero [mailto:mikelu@xxxxxxxxxxxxxxx]
Sent: Wednesday, July 07, 1999 1:10 AM
To: metastock@xxxxxxxxxxxxx
Subject: ATR stop or DEVSTOP


Does anyone have tips on using volatility stops with stocks? I've read about
using CLOSE-3*ATR ad programmed tests using that and Kase DEVSTOP into
Technifilter. The gross numeric results of my testing didn't show the
volatility stops outperforming using a stop below a 20-day low. What am I
missing?

Thanks,

Mike