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RE: GEN: Parabolic



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I wrote:

> There's one thing that bugs me about it, and it's not even the fault of
> the indicator; it's MS, Super Charts, and the like.  You can't specify a
> new "starting point".  In neither of those programs can you tell it that
> the low of 2 days ago is my first SAR point; start counting from there.
> If you happen to get into a trade 1/2 way up the trend, the SAR is
> already maxed out on its acceleration.  

To which Peter replied:

> Even if you get in late, doesnt it still give you the best exit point?

It's impossible to say "best", only because your definition and mine may
vary widely; most profit, least risk, some combination thereof, etc.
Exit strategies are an art as much as a science, and probably the least
understood (or least practiced and or most difficult) part of trading.

Having said that though, I can't say.  I'd call them GOOD, certainly,
but as I said, if the acceleration is maxed out by the time you get in
the trade, you lose a the SAR's stated objective, which is to be pretty
loose early on and tighten up as your time in the position lengthens.
For that, I can use the lowest low value of the last 3 days or something
(which I often do, incidentally).  And that I can use Metastock to track
for me without having to resort to Excel or somesuch.

I'm still trying to figure a way to figure out how to do it in
metastock, so I'll let the list know if I have a flash of insight.  =)

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