|
PureBytes Links
Trading Reference Links
|
My thought is that in my experience 4 ATRs very rarely
occur. If you run Wilders "Swing System" for instance with 4 ATRs you'll likely
to see often 90% losing trades, which means fading it is 90% accurate. Don't get
too carried away there though, cause when its right, its right for a lot, and
drawdown in such a hypothetical system would also be be substantial intra
trade... but it is nonetheless useful information to know.
----- Original Message -----
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
CRLeBeau@xxxxxxx
To: <A
href="mailto:metastock@xxxxxxxxxxxxx";
title=metastock@xxxxxxxxxxxxx>metastock@xxxxxxxxxxxxx
Sent: Saturday, March 17, 2001 6:05
PM
Subject: Re: Profit Stops
In a message dated
3/17/01 9:13:57 AM Pacific Standard Time, <A
href="mailto:neo1@xxxxxxxxx";>neo1@xxxxxxxxx writes:
<FONT color=#008080 face=Arial lang=0 size=4
FAMILY="SANSSERIF">
<BLOCKQUOTE
style="BORDER-LEFT: #0000ff 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px"
TYPE="CITE">Any thoughts on this?<FONT color=#000000 face=Arial
lang=0 size=3 FAMILY="SANSSERIF"> <FONT
color=#000000 face=Arial lang=0 size=2 FAMILY="SANSSERIF">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
|