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It's
all nice talking about profit stops because it's an important subject. But
anyone using Metastock EOD (don't know with RT) can NOT implement these things
in his SYSTEM TESTING for the simple reason that MS doesn't support to be able
to enter or exit through a stop orders (AT THAT STOP PRICE) BASED ON
SELF CODED RULES like based on ATR. And the different STOP strategies who
are supported ARE NOT OPTIMIZABLE in MS EOD !
<FONT face=Arial color=#0000ff
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<FONT face=Arial color=#0000ff
size=2>Greetings
<FONT face=Arial color=#0000ff
size=2>Mickey
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<FONT face=Tahoma
size=2>-----Original Message-----From:
owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of neoSent: zondag 18 maart 2001 15:08To:
metastock@xxxxxxxxxxxxxSubject: RE: Profit
Stops
<FONT face=Arial color=#008080
size=4>Chuck
<FONT face=Arial color=#008080
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It
would be great if you could write a book just on stops. This would include all
types of stops including the inactivity stop. Although I have read your
material on ATR's I still do not have a good feel for them and exactly how
they should be used and with what parameters. Should values be different for
low and high volatility stocks as well as MFs and ETFs or does ATR take care
of this?
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I
also used two types of trailing stops. One is a protective stop order that I
change daily, is looser, and can be triggered by the low of the day.
The other is based on the close of the day. Should these be approached
differently and with what ATR value? Would it be better to place the
protective stop order based on lows?
<FONT face=Arial color=#008080
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<FONT face=Arial color=#008080
size=4>There is no book like this and we need one. Of course any insight would
be appreciate here and now.
<FONT face=Arial color=#008080
size=4>
<FONT face=Arial color=#008080
size=4>Thanks, neo
<FONT face=Tahoma
size=2>-----Original Message-----From:
owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of CRLeBeau@xxxxxxxSent: Saturday, March 17, 2001 6:05
PMTo: metastock@xxxxxxxxxxxxxSubject: Re: Profit
StopsIn a
message dated 3/17/01 9:13:57 AM Pacific Standard Time, neo1@xxxxxxxxx
writes: <FONT lang=0 face=Arial color=#008080 size=4
FAMILY="SANSSERIF">
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px"
TYPE="CITE">Any thoughts on this?<FONT lang=0 face=Arial
color=#000000 size=3 FAMILY="SANSSERIF">
<FONT lang=0 face=Arial color=#000000 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
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