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RT’s,
It would seem to me that priority #1 in Positon Management(PM) would be
setting stops. I have done some work on this. I am presenting the following
chart with an indicator called Stop Setter(SS).
I have used the Parabolic indicator to set stops the one shown is set at
.006. The SS shows True Range(TR) and the dark bars are up days, light bars
are down. The two horizontal lines are based on Averages of the TR. The
theory goes like this if you place your stop in the lowest range(below the
lowest line) you are dog meat. Between the horizontal bars is iffy odds are
about even you will get stopped out. Above the third line your odds are
greatly improved but the trade off is that if you are stopped out your loss
is greater. I am going to attach an .ela for SS for you Omega 4.0 guys. I
think that newbies very often place there stops in the lower band. Bad PM.
Best Regards(BR),
Brent.
Attachment Converted: "c:\eudora\attach\Stops.gif"
Attachment Converted: "c:\eudora\attach\Stops.ela"
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