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Any thoughts on this?
I like to move my stops closer as the profits get larger. This allows me to
have fairly wide stops at the beginning of a trade (the wide stops at the
beginning of a trade give a higher winning percentage) and then I try to
maximize the size of my winning trades by moving the trailing stops closer so
I give back less of the open profit. This strategy is for trend following
type trades.
For counter-trend trades I just use a profit target and when I see the profit
I take it. I have found that counter trend trades generally tend to produce
profits in the neighborhood of 1.5 to 2.0 ATRs. For trend-following trades I
try to tighten up my stops after 4 ATRs of profit and then hope for more.
I'm leaving for New Zealand this weekend to do a TraderCamp in Vanuatu with
Dr. Elder so I probably won't be able to answer any e-mail messages while I
am out of the country. I'll be back in the office in April.
Chuck LeBeau
www.traderclub.com
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