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Dear Hugh:
You wrote:
As a day trader I arrived at the same conclusion as Chuck. After trading a
simple breakout system for several years with a fixed profit target, it
occurred to me that it would be sensible to have a target which varied with
market volatility, and I use a 20day ema of average true range. However,
instead of multiples of atr which are obviously valid for position trading,
I use a percentage (55%) for intraday trading.
Interestingly, I find that this exit strategy reduces the overall return
compared with holding to the close or out at breakeven, but gives a
smoother equity curve. And as I have learned the hard way, I am allergic to
large drawdowns.
Hugh.
Do you have that coded for TS, & if so, are you amenable to posting same?
TIA,
FPI
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