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MR LYNN G wrote:
>
> Thanks to all who responded: Jim, John, Neal,Proffittak, Richard and Walt and
> others
> SUMMARY:
> The main way to eliminate whipsaws seems to be (1) with displaced MA and (2)
> the bounce method i.e., a move starts,then, retraces to a MA and you enter in
> direction of the original move. Displaced MA appear to be good trailing
> stops.
>
> Additional Clarification:
> (1) What actually triggers the entry for the bounce method?
> (a) Move close to the MA on a retracement and enter at the market or (if
> this is
> used, do you look for some verification that the retracement has
> ended?)
> (b) after the retracement, enter on a stop order to buy as it goes thru a
> previous pivot or
> (c) some other method
>
1 - In an uptrend, try entering upon some higher close after meeting
your MA. It could be the first higher close, or a close above the last x
bars.
2 - Then determine how long you let it work, and exit if it hasn't taken
off. But be consistent over time in doing so.
3 - Consider reentries,
4 - and consider position sizes. Start at 1/2 or 1/3 your full size, and
increase only if the market proves your position correct.
This way, you will have minimal losses, and occasional big gains.
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