|
PureBytes Links
Trading Reference Links
|
Quoting from 'Stocks, Strategies, and Common Sense" by Bart Diliddo - the VV
founder: 'These stop prices are based upon 13 week moving averages of
closing prices, and they are fine-tuned according to each stock's safety,
fundamentals, and price trend'.
The section (on stops) goes on to explain various ways to trail or ratchet
stops. Almost invariably the stop-price is used to just to establish the
stop-loss on entry; during a trade, other exits such as trailing stops etc
would be used.
The VV buy/sell/hold is based on relative placement of a stock to its
computed stop-price.
I have followed quite a few of the VV strategies - never have I seen one use
crossing the stop-price line as an exit trigger. (but often a 'don't buy if
stock < stop-price).
IMHO: The VV stop-price line is about as meaningful, or meaningless as any
other MA in determing entries and exits. In general, I don't think it is
wise to base a strategy on anybody's proprietary indicator. You need to
know what is going on under the covers and there are more than enough
time-tested non-proprietary indicators to use that don't tie you down to a
particular vendor. Case in point - I am going to switch from VV to TC2000
and all the past work I've done that involve VV proprietary indicators (RT,
RS, RV, VST, Stop-Price) go in the trash on the switch.
To me, the strength of these products (VV and TC2000) is to expedite
management of watchlists (both creation with screening and manipulation) and
scanning their charts quickly.
-----Original Message-----
From: Steve Gibbons [mailto:sg27@xxxxxxxxxxxxxx]
Sent: Sunday, June 08, 2003 2:17 PM
To: omega-list@xxxxxxxxxx
Subject: RE: VectorVest
I recall trying this product some years ago. The trial is cheap about
$10.00.
One thing I though was strange was that they would plot a trailing stop.
But it was meaningless, because it made no assumption as to when you or it
entered the market. Perhaps they improved this or took it out.
Steve
|