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On Apr 3, 10:25am, wallst wrote:
>
> The fact that you say you are getting stopped out left and right says that,
> your stops may be too tight. Right now the S&P is very volatile and you may
> need more room on your trades for them to work, which requires more risk. I
> personally have stopped trading the S&P temporarily for that reason.
>
In various short-term (and daytrading) systems that I've experimented
with (usually a veriation on breakout/trailing stop), the systems
almost always had an operating range where they performed best when
volatility was neither too high nor too low. The values that
seemed to work best were in the neighborhod of a 5-day
average true range >= 0.75% and <= 3% (basis the S&P).
Adding an additionally volatility factor to your system
may improve the system's overall success.
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