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I have read a lot on trailing stops. I think there is a problem with
the way the 9.0 Trailing Stop Loss handles them. I think they need
to be coded.
A friend of mine once gave me what I think is good advice. He hated
to lose money. So he would enter every trade as a day trader. If the
security was not acting how he wanted he would get out in a hurry.
Once the security gained enough profit he would enter close stops so
he would not lose money.
I have seen ATR suggested in the formulation of trailing stops. This
does not makes much sense to me as the only price that will trigger
the stop is the low. Perhaps some measure of the volatility of the
low would be useful.
It seems it might be useful to set the stop loss at a certain %
below the highest low. The percentage would be different for each
security and could be determined with the ST.
One can also consider the parabolic or ratchet stop where the stop
becomes tighter as the trade moves along.
I think stops need more attention. Too much attention is paid to
picking and entering a security and not enough on the exit.
Christie
--- In equismetastock@xxxxxxxxxxxxxxx, "Paul Lerno"
<paul.lerno@xxxx> wrote:
> Hi Metastkuser,
> I have done some research on trailing stops.
> What I have observed?
> Cross(HHV(C-2*ATR(10),20),C) gives better results than Cross(HHV(C-
2ATR(10),15),C).
> Changing C by L is ridiculous and changing C by Mov(C,10,s) or
bij Mov(C,20,s) gives no
> good results.
> Regards,
> Paul L
>
> ----- Original Message -----
> From: metastkuser
> To: equismetastock@xxxxxxxxxxxxxxx
> Sent: Thursday, March 31, 2005 6:41 PM
> Subject: [EquisMetaStock Group] Creamed?
>
>
>
> How many of you have gotten creamed this quarter? I did on some
of my
> positions because of a lack of...... DISCIPLINE!
>
> Thought I'd share this excerpt from an article today (emphasis is
> mine). It is so, so true:
>
> ************
> Trading is a lot harder than it looks. We can do everything
right but
> still crash and burn after we pull the trigger. Surprisingly,
finding
> good positions is the easiest part of our jobs. Managing them
into a
> profit is far more difficult.
>
> This exposes an uncomfortable truth about our participation in
the
> markets: Most of us fail because of a lack of discipline, not a
lack
> of knowledge. In fact, there's only one method to deal with this
> career threat. HONOR YOUR STOPS. We're not investors, so we
can't act
> or think like them.
>
> Many traders ignore their stops, or don't place them at all. But
it
> can be hard to get out of a bad position gracefully without a
> preplanned exit strategy. Unfortunately, many folks just hope
for the
> best after they assume equity risk. But sooner or later, market
> dynamics will force them to pay the price for their laziness.
> ************
>
> More trailing stops talk anyone???
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