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Hello Adrian,
Sorry I did misread that gif what now appears to be 3 lower lows I
mistook as being a swinghigh with a right strength of three.
As I understand it you are trailing the high at the low of two bars
ago
Take another look at the gif you sent and you will see it is not 100%
accurate as you say
There are a number of missing blue bars and one blue bar (no.8) that
shouldn't even be there.
Questions
What defines the entry from long to short, it looks like you are
using 3 lower lows in the gif?
Are you looking for suggestions to improve on the entry or help coding
it as it is?
AP> The different stops you list foolsgold are standard definitions found in
AP> hundreds of different books on trading.
I disagree, I don't know of any book which states that most trailing
stops only occasionally stop with a profit, Contrary to all the gloss
the guru books say about trailing stops, a common real life scenario
is that you enter a trade, the price spikes up pulling your stop up
to, say just below your entry price, then the price comes back down to
where, just below your entry price.
Thats the reason the End of day exit and Profit target are higher on
my list than the trailing stop.
AP> People looking for systems that have a high win% are chasing the wrong
AP> rainbow.
The system I recommended you look at for idea's is about 75%
profitable on the bond data I have, if you are trading a system that's
less than 50% perhaps you should swap that system for a flip of a coin.
foolsgold
AP> I'm afraid you completely misinterpreted my email and followed with
AP> assumptions that were totally incorrect. I hope other readers can
AP> understand my request and perhaps provide some insight. The graph as
AP> labelled from the high is 100% accurate as defined by my instructions in
AP> the last email. It has nothing to do with marking swing highs or lows,
AP> the blue horizontal lines show the trailing stop as it moves when price
AP> moves, nothing more complicated than defined.
AP> People looking for systems that have a high win% are chasing the wrong
AP> rainbow. That is already a well documented fact. Successful traders are
AP> more interested in actually making money than being right.
AP> The different stops you list foolsgold are standard definitions found in
AP> hundreds of different books on trading. They tell an experienced trader
AP> little that isn't already known, and is only step one in a long journey.
AP> I am surprised foolsgold, that if you are a traders that you don't see
AP> what I am asking as being one type of trailing stop, that should be as
AP> obvious as it is apparent to anyone that has used any type of mechanical
AP> system.
AP> I do appreciate your response though and your intention to be helpful.
AP> A look at the graph will show that as each new bar reaches a new
AP> extreme, the blue stop line trails 2 highs (in the case of a low) away
AP> from the high of the extreme bar. I'm hoping someone can understand my
AP> explanation as suggest a way of coding this in TS2000i.
AP> As is obvious from the graph, it comes up with very different stops to
AP> that derived by the Donchian method.
AP> Regards,
AP> Adrian
AP> -----Original Message-----
AP> From: foolsgold [mailto:foolsgold0@xxxxxxx]
AP> Sent: Thursday, 14 November 2002 8:28 PM
AP> To: Adrian Pitt
AP> Cc: omega-list@xxxxxxxxxx
AP> Subject: Re: ELA Question on Trailing Stops
AP> Hello Adrian,
AP> Looking at your gif I see you marked turning points at some swinghighs
AP> and swinglows while other valid swinghigh/swinglows were overlooked.
AP> Mechanically trading with swings there is no way of avoiding the false
AP> signals that crop up in the middle of the nice moves, if you make your
AP> swing look-back too far you miss most of the move. Percent Profitable
AP> Trades using swing systems is not usually very high because of the
AP> number of fake-out swing trades. I personally like a system that has a
AP> high number of Percent Profitable trades and suggest you look at
AP> something other than swings. A starting point may be to look at the
AP> system MACount by Robert Linders that was posted on this list on Oct.
AP> 26th
AP> As far as stops go here is my opinion
AP> 1. End of day Exit ( May improve results, easily tested. )
AP> 2. Profit Target ( Stops you out with a profit )
AP> 3. Trailing Stop ( Occasionally stops with a profit )
AP> 4, Money Management Stop ( Disaster Protection )
AP> regards
AP> foolsgold
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