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metastock-digest wrote:
>
> metastock-digest Thursday, March 22 2001 Volume 01 : Number 1295
>
> ----------------------------------------------------------------------
>
> Date: Mon, 19 Mar 2001 16:01:33 +1000
> From: "Jeff Ledermann" <j.ledermann@xxxxxxxxx>
> Subject: RE: Profit Stops
>
> >...
> > we have now. Certainly you're not suggesting having the courage to go
> > without a stop will be best, so I think I'm missing your point here.
> >
> > Sincerely-
> > Ron Scott
>
> I think the word you should have used was stupidity not courage :)
> Dave is sort of right - test it for yourself if you don't believe this.
> Almost every system will show lower profits with stops and profits will
> decrease as stops are made tighter.
>
> Now the other side of the coin is that tightening stops (to some minimum
> point) reduces drawdown which means that the equity required to trade the
> system decreases. This means that with a given account size you can trade
> more contracts, which means that as you tighten stops you make more money.
> Obviously there is an optimum stop level where you minimize drawdown and
> maximize the winning percentage of trades.
>
> Jeff.
>
> ------------------------------
>
> Date: Mon, 19 Mar 2001 07:55:11 -0000
> From: "Theo E.M. Lockefeer" <sky40912@xxxxxxxxx>
> Subject: test please ignore
>
> This is a multi-part message in MIME format.
>
> - ------=_NextPart_000_002B_01C0B049.EC989E20
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> charset="iso-8859-1"
> Content-Transfer-Encoding: quoted-printable
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> test
>
> - ------=_NextPart_000_002B_01C0B049.EC989E20
> Content-Type: text/html;
> charset="iso-8859-1"
> Content-Transfer-Encoding: quoted-printable
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> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
> <HTML><HEAD>
> <META http-equiv=3DContent-Type content=3D"text/html; =
> charset=3Diso-8859-1">
> <META content=3D"MSHTML 5.50.4522.1800" name=3DGENERATOR>
> <STYLE></STYLE>
> </HEAD>
> <BODY bgColor=3D#ffffff>
> <DIV><FONT size=3D2>test</FONT></DIV></BODY></HTML>
>
> - ------=_NextPart_000_002B_01C0B049.EC989E20--
>
> ------------------------------
>
> Date: Mon, 19 Mar 2001 06:24:45 -0700
> From: "Ron Scott" <ron@xxxxxxxxxx>
> Subject: RE: Profit Stops
>
> Well, yes....I suppose that word would also work. :-) The problem of course,
> is say you took several 5R losers in a row. Then you might not get the same
> results. However, whether we admit it or not, even trading a system,
> emotions do play a role, in terms of having fear during drawdowns and the
> inability to stay with a system. There is no way to know how smart or
> "stupid" we are until after the trade has been entered (and exited for that
> matter), and it gets harder during drawdown periods. I think many people
> are much more disciplined in backtesting than actual execution, and this can
> dramtically affect actual trading results.
>
> Your idea of an optimum stop level on entry is very interesting, and I have
> pursued it for some time, but I do not have the answer. But you are right,
> a tighter one can allow a larger position size, and if it doesn't get hit,
> larger profits.
>
> Sincerely-
>
> Ron
>
> - -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Jeff Ledermann
> Sent: Sunday, March 18, 2001 11:02 PM
> To: metastock@xxxxxxxxxxxxx
> Subject: RE: Profit Stops
>
> >...
> > we have now. Certainly you're not suggesting having the courage to go
> > without a stop will be best, so I think I'm missing your point here.
> >
> > Sincerely-
> > Ron Scott
>
> I think the word you should have used was stupidity not courage :)
> Dave is sort of right - test it for yourself if you don't believe this.
> Almost every system will show lower profits with stops and profits will
> decrease as stops are made tighter.
>
> Now the other side of the coin is that tightening stops (to some minimum
> point) reduces drawdown which means that the equity required to trade the
> system decreases. This means that with a given account size you can trade
> more contracts, which means that as you tighten stops you make more money.
> Obviously there is an optimum stop level where you minimize drawdown and
> maximize the winning percentage of trades.
>
> Jeff.
>
> ------------------------------
>
> Date: Mon, 19 Mar 2001 11:47:56 -0600
> From: rick <mcbride3@xxxxxxxxxx>
> Subject: Re: UNSUBSCRIBE
>
>
>
> ------------------------------
>
> Date: Thu, 22 Mar 2001 00:00:49 -0600
> From: "Lionel Issen" <lissen@xxxxxxxxx>
> Subject: [none]
>
> test 33/21/01
> Lionel Issen
> lissen@xxxxxxxxx
>
> ------------------------------
>
> End of metastock-digest V1 #1295
> ********************************
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