Trading Systems and Money Management : A Guide to Trading and Profiting in Any Market

Meander System, V.1.0 The meander system also did best with stops and exits based on the true-range concept. The first of the tw ...

238 FIGURE 20.14 A stop loss of 1.8 ATR. FIGURE 20.15 Maximum trade length versus number of profitable trades. ...

run the optimization procedure and allow for even larger stop-loss distances, but for the purposes of this book, these results w ...

tables also count the weekends and holidays. You can get a better estimate for the effective average trade length by using the f ...

The reasoning used in the stop-loss version of the system also holds true for the trailing-stop version, with the addition that ...

In the case of the ATR method, the stop loss is relatively far away from the entry price, which means that more trades are likel ...

nicely. Starting with Figure 20.16, we can see that a profit target 2 ATRs away from the entry price produces the highest profit ...

244 FIGURE 20.17 Profit target using trailing stop 2. FIGURE 20.18 Profit target using trailing stop 3. ...

a trailing stop of 2.7 ATR. In this case, we will go with the 2.4-ATR stop because it keeps us closest to the left-hand corner o ...

Stop-loss Version As it turned out, the best version of this system, using the percentage concept, only managed to produce an av ...

average profit per trade by the average number of days in a trade, you will find that it is slightly higher for this version tha ...

average profit per trade, this version of the system calls for a longer maximum trade length, which will lower the average profi ...

Stop-loss Version Using the stop-loss method, the best version of this system incorporated a stop loss of 0.6 percent, a profit ...

Uncommented Bonus Stops Because I had to keep the stops fairly basic for the research in this book, here are a bunch of more com ...

End; If StopLoss > 0 Then Begin If Close < EntryPrice * LongLoss Then ExitLong ("L.C-Loss") on Close; If Close > EntryP ...

End; {***** The Min-move Stop *****} If TrueMinBarMove > 0 Then Begin TrueNextBar = BarsSinceEntry + 2; ExitLong ("L-Min") Ne ...

If TrailingStop > 0 Then Begin TrailRange = TrailingStop * OneRange; ExitLong ("L-Trail") Next Bar at Close - TrailRange Stop ...

If MaxLength > 0 and BarsSinceEntry >= TrueMaxLength Then Begin ExitLong ("L-Time") on Close; ExitShort ("S-Time") on Clos ...

Chapter Systems as Filters You can determine the long-term trend several ways. The most straightforward way is simply to use you ...

In the April 2000 issue of Active Tradermagazine, I illustrated the impor- tance of only trading with the long-term trend on the ...