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I'd mention using options instead of stops but from past experience I'd just
be whistling in the wind.
Brent
-----Original Message-----
From: Linda Swope <lswope@xxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Saturday, April 17, 1999 10:46 AM
Subject: Re: GEN: Barrier Stops
>Hi Russ,
>
>TASC did a series of articles about testing stops back in the March - May
>1998 issues. The author's conclusion was that barrier stops, such as a
>trendline or fib support level were more effective than a trailing stop.
>
>He thoroughly tests trendlines as stops in the May issue and the dollar
>amounts you might allow the bar to penetrate before stopping out. He
>balances that with a money management stop and says pick the one that's
less
>risk on each individual trade. His best combo was a $500 money stop with a
>$100 penetration stop.
>
>My struggle is finding a stop far enough away to allow for noise and yet
>close enough to not blow the risk : reward ratio. A solution might be
>waiting for those classic 50% or 62% retracements. Your stop (a barrier
>stop of fib support) can be close to your purchase prices, greatly
>increasing the risk : reward ratio. Now to exercise the patience required
>to wait for those retracements to set up so beautifully is another
>struggle...
>
>Linda
>linda@xxxxxxxxxxxxxx
>Climb the mountains & get their glad tidings: Peace will flow into you as
>sunshine into flower; the winds will blow their freshness into you & storms
>their energy, & cares will drop off you like autumn leaves. John Muir
1838 -
>1914
>
>
>>I look forward to other position sizing ideas. Thanks Kevin and others
for
>>the good responses to my post! I don't have a lot of time and I am
spending
>>my sleep hours reading this list but I will do my best to respond to the
>>other position sizing comments.
>
>
>
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