|
PureBytes Links
Trading Reference Links
|
<FONT face=Arial color=#008080
size=4>Chuck
<FONT face=Arial color=#008080
size=4>
I have
read your ATR bulletins and they are excellent. I do not trade in real time so I
use 2 trailing stops. The first is based on the close of the day and is lower. I
have been using a % drop that varies with the volatility. I probably need to
study ATR more carefully.
<FONT face=Arial color=#008080
size=4>
The
second trailing stop I use is a stop order. This is higher and stops me out on a
large intraday low. Because this is really triggered by the low of the day I
wonder if ATR is less useful here. It seems that perhaps it should be based on a
% below the lowest low (for longs) since the stock was bought and adjusted for
upward movement.
<FONT face=Arial color=#008080
size=4>
Any
thoughts on this?
<FONT face=Arial color=#008080
size=4>
<FONT face=Arial color=#008080
size=4>neo
<FONT face=Arial color=#008080
size=4>
<FONT face=Tahoma
size=2>-----Original Message-----From:
owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of CRLeBeau@xxxxxxxSent: Friday, March 16, 2001 6:23
PMTo: metastock@xxxxxxxxxxxxxSubject: Re: Profit
StopsIn a message
dated 3/15/01 1:39:50 PM Pacific Standard Time, neo1@xxxxxxxxx writes:
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px"
TYPE="CITE">I wonder if people could comment on profit stops. It seems that
I buy stocks, the price increases, and then they fall down and I lose
most of my profits. Is it best to stick with a trailing stop or should a
certain profit % be used to take profits? What profit stop should be
used? Neo, I like to use stops and profit
objectives that are measured in units of Average True Range. The ATR
contracts and expands with volatility so you can use the same formula for
a very quiet stock or for a highly volatile stock. I have written
several educational Bulletins about this topic that can be found at
http://www.traderclub.com/discus/board.html These Bulletins are free
so hope you don't think I'm spamming. Just trying to be helpful.
Chuck LeBeau
|