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Ian:
There was a discussion here about a year ago on Omnitrader, and at least one
contributor pointed out that the multiple indicator system of Omnitrader
will give poorer signals than a single indicator as a multiple indicator
will give you a sort of average result (which includes the poorer signals)
which is less than any of the better indicator results. Another point to
remember: in "The New Technical Trader" Chande a Kroll point out that
price-only based indicators are highly correlated.
Lionel Issen
lissen@xxxxxxxxx
----- Original Message -----
From: Ian Burgoyne <iburgy@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Tuesday, April 04, 2000 5:20 PM
Subject: Trailing Stop
> I've been trying to improve my position trading by using a volatility
> indicator to exit long positions primarily to protect profits. I like the
> concept of a volatility stop as it is directly linked to the ranging
> activity of the security. A number of them have been discussed on this
forum
> such as the Volatility Stop (Long) by Chande & Kroll, Trading The Trend by
> Andrew Abrahams, ATR Trailing Stop by Yngvi Hardarson and the Count Back
> Line by Daryl Guppy.
> I've attached a chart of a trade I exited today.
> Acting on the exit signal given by all the indicators yesterday I exited
too
> late and gave up about 72% of available profit which is way too high a
price
> for my liking. By using a lower multiplier of the ATR I would get a
tighter
> stop but often it can take you out of a trade prematurely. Had I based my
> exit on the trendline I would have exited yesterday.
> I know it's difficult to counter a gap move down like this one but can
> anyone suggest a better method which will keep a good portion of profits
yet
> not exit trades too early.
> regards
> Ian Burgoyne
>
>
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