|
PureBytes Links
Trading Reference Links
|
No one wants to learn about limited risk and unlimited profit. Ira.
BrentinUtahsDixie wrote:
> 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.
> >
> >
> >
|