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JAC1390@xxxxxxx wrote:
>
> I just drew a blank. I know this is a newbie question but when setting stops
> in a system (TS) please clarify % risk trailing set at 12.00
> and Floor($) set at 500.00
> per contract basis.
> Is this stop enabled only when there is a 12% gain and/or $500 profit captured
> in position ???
>
> Thank you, signed perplexed
I think it means: Until $500 profit is achieved, this stop is not
active. Once $500 profit is achieved, a stop is set to protect 88% of
that profit (i.e., you are risking 12% of the profit). If the profit
increases, TS should move up the stop to protect 88% of the new profit,
based on highest high for a long.
The illustration in the manual (p. 348) shows it being active on the bar
where the profit is achieved. That assumes you would have adjusted the
stop during the bar. For a strictly end of day trader this would not be
true.
Also, there might be some uncertainty about how the prices actually
flowed during the day (bar). Clearly if there is a high above your
"floor" and the close is lower than your %-to-risk setting, then a
retracement occurred after the profit was achieved. But what if the
close is higher than your stop out point? Then you are not sure. I
suppose TS would exit based on the assumed order of prices based on open
and close (the best it can do without intrabar data).
Please not that I havent' really examined this stop's behavior; I am
going on what the manual says about the stop and on discussion there and
here about the way TS has to make assumptions about intrabar movement.
Conrad Bowers
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