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<DIV><FONT color=#000000 size=2>Good Day RealTraders:</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>SECOND AND LAST REQUEST.</FONT></DIV>
<DIV><FONT color=#000000 size=2>Over the past year I have posted several items
relating to CycleTrader by the Bressert Group. Every time I post an item I have
found significant interest, most of the time from over 150-200 or so of
you. Last week, I had several people I have had a dialogue with over the
last year ask if there is a user group and if not, forming one. </FONT></DIV>
<DIV><FONT color=#000000 size=2>After considerable thought, I contacted Eddie
Kwong to ask if I could make such a post. He responded most favorably with the
condition that it is not for solicitation purposes. And it is not. </FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT><FONT color=#000000 size=2>So, I would
like to hear from all those interested in starting a user group. Please respond
privately as to not interfere with RealTraders normal dialogue.</FONT></DIV>
<DIV><FONT color=#000000 size=2>If there is enough interest, all of you will be
contacted in the near future.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Sincerely,</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Richard
Chehovin</FONT></DIV></DIV></DIV></BODY></HTML>
</x-html>From ???@??? Sun Oct 18 08:09:18 1998
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Date: Sun, 18 Oct 1998 08:09:41 -0500
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From: cb <cpbow@xxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: GEN: Parabolic
References: <01BDFACE.B5AC0B00.pryan@xxxxxxxxxxxxxx>
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Peter Ryan wrote:
>
> I have started using Parabolic as a trailing stop in a couple of my systems.
> I dont see it mentioned very often in books or on lists like this.
>
> Is there some reason it is not popular.
>
> Thanks
> Peter Ryan
Maybe because it was originally presented as a stop-and-reverse system.
Without some kind of filtering I don't think it tests well as a stand
alone system except in the trendiest of mkts. Lebau and Lucas do
suggest using it with ADX as a filter.
I think it's a pretty good choice for a stop (exit only), particularly
if you experiment with the parameters. If your software allows it, try
changing both the "initial %", (the % of (H-par[1]) that it moves up on
the second day of a long), as well as the acc. increment (the amt the %
increases with each new high). You can make it less parabolic and more
like a curvy trendline, displaced a little ways from the data, if you
use higher initial% and a lower increment. I didn't like the very slow
initial response of the parabolic with default parameters of 2%, 2%.
Using 5-10%, and about 0.5% seemed to make a better stop that follows
the trend well, gets fooled into a premature stop rarely, and, on medium
to longterm trends, doesn't give up too much of the gains before exiting
on true reversals. What it doesn't do well on, even with modified
parameters, are short term profits at the beginning of the trade - if
that's all that develops you will likely give them back. Of course this
is true of any stop that gives the trade room to "breath". I suspect
the big gap between the mkt and the parabolic at the beginning,
particularly with the default parameters, is another reason it is not
popular.
[I haven't succeeded at this trading thing yet, so take all comments for
what they're worth.]
Conrad Bowers
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