More stop questiona

[sectorbets]

Hi David--

You have been a great help in getting my various volatility stops working, but I'm haveing trouble with what should be two very simple tests, and hope you can help once again.

The first type of stop I want to test is a simple stop set some percent below the entry price, let's say 5%, 8%, 10%, etc.

The second is to set a stop some percent below the maximum profit to date (after an inital waiting period of let's say three days) in a trade, also 5%, 8%, 10%, etc.

Best wishes,
Rick Martin

[David Samborsky]

Hello
The first type of stop I want to test is a simple stop set some percent below the entry price, let's say 5%, 8%, 10%, etc

Try this

InitialStop:= 0.95*EntryPrice; { 5% }
InitialStop:= 0.92*EntryPrice; { 8% }
InitialStop:= 0.90*EntryPrice; { 10% }

Note that you may have to set the inactivity delay parameter to prevent from being stopped out prematurely. It's your choice of course.


The second is to set a stop some percent below the maximum profit to date (after an inital waiting period of let's say three days) in a trade, also 5%, 8%, 10%, etc.

Sounds like a profit retracement stop. I experimented with this kind of stop a while ago and abandoned it because it kept whip sawing me out of trades. You need to use a custom external formula to do this kind of thing. May look at providing one in the TradeSim function library.

[sectorbets]

Thanks as always for your help--guess I just had mud on the brain when it came to setting the InitialStop as you indicated!

As to the second question, maybe I am doing it "correctly" in that I also seem to get whipped around more than anticiapted.

Best wishes,
Rick Martin