|
PureBytes Links
Trading Reference Links
|
Foolsgold,
I'm afraid you completely misinterpreted my email and followed with
assumptions that were totally incorrect. I hope other readers can
understand my request and perhaps provide some insight. The graph as
labelled from the high is 100% accurate as defined by my instructions in
the last email. It has nothing to do with marking swing highs or lows,
the blue horizontal lines show the trailing stop as it moves when price
moves, nothing more complicated than defined.
People looking for systems that have a high win% are chasing the wrong
rainbow. That is already a well documented fact. Successful traders are
more interested in actually making money than being right.
The different stops you list foolsgold are standard definitions found in
hundreds of different books on trading. They tell an experienced trader
little that isn't already known, and is only step one in a long journey.
I am surprised foolsgold, that if you are a traders that you don't see
what I am asking as being one type of trailing stop, that should be as
obvious as it is apparent to anyone that has used any type of mechanical
system.
I do appreciate your response though and your intention to be helpful.
A look at the graph will show that as each new bar reaches a new
extreme, the blue stop line trails 2 highs (in the case of a low) away
from the high of the extreme bar. I'm hoping someone can understand my
explanation as suggest a way of coding this in TS2000i.
As is obvious from the graph, it comes up with very different stops to
that derived by the Donchian method.
Regards,
Adrian
-----Original Message-----
From: foolsgold [mailto:foolsgold0@xxxxxxx]
Sent: Thursday, 14 November 2002 8:28 PM
To: Adrian Pitt
Cc: omega-list@xxxxxxxxxx
Subject: Re: ELA Question on Trailing Stops
Hello Adrian,
Looking at your gif I see you marked turning points at some swinghighs
and swinglows while other valid swinghigh/swinglows were overlooked.
Mechanically trading with swings there is no way of avoiding the false
signals that crop up in the middle of the nice moves, if you make your
swing look-back too far you miss most of the move. Percent Profitable
Trades using swing systems is not usually very high because of the
number of fake-out swing trades. I personally like a system that has a
high number of Percent Profitable trades and suggest you look at
something other than swings. A starting point may be to look at the
system MACount by Robert Linders that was posted on this list on Oct.
26th
As far as stops go here is my opinion
1. End of day Exit ( May improve results, easily tested. )
2. Profit Target ( Stops you out with a profit )
3. Trailing Stop ( Occasionally stops with a profit )
4, Money Management Stop ( Disaster Protection )
regards
foolsgold
AP> Hi,
AP> I'm wondering if someone could give me some suggestions here. I'm
AP> trying to work out how to program a particular type of trailing
AP> stop. Typically many use the Donchian X day trailing stop. I am
AP> trying a variation. I have attached a graph showing what I am trying
AP> to achieve.
AP> Basically I want to find the current price extreme, say a high, then
AP> trail a stop below that high X bars back from the low of the high
AP> bar, calculated via the low I.e. I move back from the low of the
AP> high bar until I hit X new price lows and that becomes the stop
AP> point. This may involve going back many bars before being able to
AP> find those X news lows, or highs in the case of a low pivot. The
AP> example shown works on X=2. What this will means is that when a
AP> small choppy consolidation forms it wont necessarily stop you out as
AP> would a Donchian stop.
AP> I know I probably need to use the SwingHigh/Swinglow functions, but
AP> because of the complexity of not knowing how many bars may be
AP> involved it gets complicated. I was hoping someone here could
AP> provide some suggestions on how to tackle this. It would much
AP> appreciated.
AP> Thanks,
AP> Adrian Pitt
|