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Scot Billington wrote:
> >My problem is not so much the initial "fail safe" stop, but figuring out how
> >to protect profits. I have been looking at both taking profits at targets
> >(eg. Fibo targets), and letting profits "run", and trailing stops, and being
> >taken out of the trade.
> >
> >Any opinions on what works best, or what, for instance, would serve as a good
> >trailing stop?
>
> In every test I have done trailing stops outperformed targets.....
>
> There is no 'magical' stop. Generally, any of the well known indicators
> (moving averages, parabolics etc.) will lock in profits at an increasing
> rate............
>
> Scot
I also agree with the above recommendation. The market(s) will go freely to
wherever it feels like to go. It doesn't HAVE to go to our pre-determined
'targets'. Besides moving averages, parabolics; another very useful trailing stop
is the two-days low or two-days high to lock in profits. Regards.
Have a good one
Jeff Harteam
Hong Kong
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