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MM's constantly gun the market to zero in stocks such as Dell and AOL
Imagine selling 100 shares of AOL for zip and takin' out all those stops on
the way back up. I edit out all these data to the last posted price in my
charts......russ.
-----Original Message-----
From: Clint Chastain +ADw-flag+AEA-cwixmail.com+AD4-
To: Omega List +ADw-omega-list+AEA-eskimo.com+AD4-
Date: Wednesday, February 17, 1999 4:04 PM
Subject: Chandelier Exit Snag
+AD4-I've been tinkering once again with the Chandelier Exit using something
+AD4-along the lines of, for example,
+AD4-
+AD4-If H +AD4- L+-Fac+ACo-Average(TrueRange,ATRLen) then ExitLong or
+AD4-If L +ADw- H-Fac+ACo-Average(TrueRange,ATRLen) then ExitShort
+AD4-
+AD4-A problem I've noticed is that in some markets it tends to trip too early
on
+AD4-some occasions. For example, in watching DELL, it will be bobbing along in
3
+AD4-min bars between roughly 81 and 84 and then you'll get one or two ticks at
+AD4-78 which trigger the short exit+ADs- meanwhile Dell returns to bobbing along
+AD4-between 80 and 83, say.
+AD4-
+AD4-Presumably, in this example, the 78's are bad ticks and you could edit or
+AD4-ignore them. But sometimes its not all that clear - say the markets between
+AD4-80 and 82 for the past 15 min and then you get two ticks at 79.375 and then
+AD4-the market returns to 80 - 82 range. Are those bad ticks? Should I pay
+AD4-attention to the Chandelier short exit that just tripped?
+AD4-
+AD4-One work around might be to require the exit to trip twice in a row, but
+AD4-then that might reduce the effectiveness of the exit.
+AD4-
+AD4-Anybody have any thoughts on this?
+AD4-
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+AD4-
+AD4-Clint
+AD4-
+AD4-
+AD4-PS I originally sent this to the Code list but it never appeared there that
+AD4-I could see. Maybe I am unsubscribed there, or maybe I just don't know how
+AD4-to send a proper email. Anyway, sorry if this winds up cross posting.
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