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Measuring Profit Targets in terms of multiples of Average True Range. Hmmm.
Interesting - and totally new to me.
In my initial experimentation with this idea I find that it does seem to
salvage some otherwise marginal trading strategies. Where did this idea
come from?
Clint
-----Original Message-----
From: CRLeBeau@xxxxxxx <CRLeBeau@xxxxxxx>
To: flag@xxxxxxxxxxxxxxx <flag@xxxxxxxxxxxxxxx>; omega-list@xxxxxxxxxx
<omega-list@xxxxxxxxxx>
Date: Saturday, September 26, 1998 7:02 PM
Subject: Re: System Exits
....The potential per tradeprofit on short term systems needs to be
maximized. Should this be by letting profits run further or by trying to
exit on strength? Personally I would be inclined to take profits rather
than holding though ups and downs. Measure profit targets in multiples of
Average True Range and not in dollars so you take what the market offers.
Some profits will be larger than others when there are changes in
volatility. This should also make the exits more robust.
>
>Just scratching the surface here but wanted to contribute something.
>
>Chuck
> http://traderclub.com/
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