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[EquisMetaStock Group] Re: Challenge code, stops and support and resistance



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Trading Reference Links



Just move to Cambridge and sign up. Night school is cheaper too. 

http://www.extension.harvard.edu/

The equation you wrote is for another type of position sizing. There 
are many. The equation I posted yields the best returns regardless of 
the system it's applied to. There are other position sizing methods 
that are close. The one you wrote out was the worst performing of the 
all the position sizing methods. I guess that might be a flaw. 



--- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser" 
<andysmith_999@xxxx> wrote:
> 
> 
> Super,
> 
> Whew! By the way, regarding the stops based on support and 
> resistance, I meant:
> 
> POSITION SIZE = (MAXIMUM AFFORDABLE LOSS)/STOP
> 
> where the position size scales with the stop. And the maximum loss 
is 
> fixed (say 1% of the capital account). The only case where things 
> might go wrong is when the trade is already executed and the stop 
> needs to be adjusted and it begins to widen. Please let me know if 
> you see a flaw here.
> 
> And please send me the address for that night school.
> 
> 
> 
> --- In equismetastock@xxxxxxxxxxxxxxx, superfragalist 
<no_reply@xxxx> 
> wrote:
> > 
> > 
> > I know this answer is not what you want to hear, but rather than 
> > reading a bunch of my posts on this and other sites, the better 
> thing 
> > to do is to start reading some of the system's development books 
> that 
> > will really answer your questions. Setup a reading schedule, 
> consider 
> > it your graduate education in trading. That will benefit you a 
lot 
> > more in the long run. You will get a bigger return from your book 
> > investment than you will get from your trading. 
> > 
> > For example, rvalue just brought up the issue that stops reduce 
> > profit. There's no quesiton that in most cases that's true, but 
> it's 
> > not true with all stops and in all cases. Different types of 
stops 
> > are used in different circumstances. You can learn about this 
from 
> > guys like Thomas Stridsman and others.  
> > 
> > I have two stops on my trading screens, one is based on 
Chandelier 
> > exits and one on adaptive ATR stops. The Chandelier stop is 
tighter 
> > and adaptive ATR is somewhat more relaxed. Which stop I take 
> depends 
> > on the market conditions at the time. You can't program that into 
a 
> > systems tester. However, when I use the adaptive ATR stop in the 
> > tester the profitability of the system goes up so why wouldn't I 
> > follow it exclusively? Market conditions!
> > 
> > I can't possibly explain enough about using stops in a couple of 
> > short posts to teach anyone anything that will save their butts. 
I 
> > learned the adaptive coding from Perry Kaufman and the Chandelier 
> > methods from LeBeau. It took awhile to get it right, and it 
didn't 
> > come from a post or two. Both methods use the ATR but there is a 
> huge 
> > difference in how they use it. 
> > 
> > Andy asked the question about support and resistance for setting 
> > stops. You can do that, some people advocate it, but it will 
cause 
> a 
> > lot of traders to go broke because they are not stopping out when 
> > they hit the maximum loss they can afford for the size of their 
> > capital account. (preservation of capital is more important than 
> > profit) In addition, you can't get two people to agree on where 
> > support and resistance is at on a chart. 
> > 
> > Rvalue says stops reduce profit--as I said in most cases they do, 
> but 
> > they keep you in the game. Using a very, very large stop is 
called 
> > buy and hold. 
> > 
> > Boards allow many, many people to express their opinions. 
> > Unfortunately most of the opinions are not backed up by any 
> education 
> > or substantive facts, so they are of little value, and at the 
worst 
> a 
> > lot of them are down right wrong. So I wouldn't come to a chat 
> board 
> > to learn anything. I would go to people who actually have to 
depend 
> > on what they do to make a living. I don't mean the people who 
want 
> to 
> > sell you their trading systems and seminars. I'm talking about 
> people 
> > like Kaufman and Stridsman who develop systems for a living and 
> share 
> > they knowledge of what works and what doesn't in their books. 
> > 
> > I often hear people say that they can't afford to read the books, 
> or 
> > they don't like reading, etc. Well, if you lose $20,000 trading, 
> how 
> > many books could you have afforded. 
> > 
> > You can get your MBA from Harvard night school for less than 
> $40,000 
> > (night school doesn't have the entrance requirements like the day 
> > program so that's not an excuse, and the diploma doesn't say 
night 
> > school). How many people would do that as compared to those that 
> have 
> > lost more than that amount trying to trade. It's ridiculous how 
> high 
> > the cost of ignorance is. 
> > 
> > When I was first starting in the investment business, I had a 
> friend 
> > who had been in the business for many years and was very 
> successful. 
> > He told me that if you asked 100 people if they wanted to be 
rich, 
> > 99% of them would say yes, but only 1% would be willing to do 
what 
> it 
> > takes. He was dead ass right!
> > 
> > 
> > 
> > 
> > --- In equismetastock@xxxxxxxxxxxxxxx, Divya Singh 
> > <divyasingh01@xxxx> wrote:
> > > Superfragalist,
> > >  
> > > I too find your posts extremely intresting and balanced backed 
by 
> a 
> > lot of experience (so it seems) - What are the other grps you 
post 
> > in? would like to read them ..............
> > >  
> > > Divya 
> > > 
> > > superfragalist <no_reply@xxxxxxxxxxxxxxx> wrote:
> > > 
> > > 
> > > Thank you for the kind remarks. I assume you're basing your 
> > comments 
> > > on a compilation of postings on all boards, not just this one. 
I 
> > > don't post much on here. However, it's far too much for a lot 
of 
> > the 
> > > members.








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