one of you always asks this every time the system is in a trade
after a draw down like clockwork, has been covered many
countless times before. Anyway I was going to point you to
the FAQ as I thought it was discussed there but I don't see it, so
I need to add paragraph section, again I'm sure it was on the old
site, must not have gotten ported over.
anyway the Breakout Sub system has a tradition hard stop.
The other reversion to mean sub systems do not, they exit bad
trades on a bounce. Testing has always showed that it was
better to exit on a bounce than on a sheer hard sell off where you
tended to stop out at lows.
Otherwise one could use some of the statistical information as a
guide for a stop loss. The Strong Trend Shallow Pullback sub
system, which first triggered the system long, in the first
past had a max draw down of -3.3% on the 1st entry. One could
use that as a guide placing a stop wider than that. The
current first entry on the strong trend shallow pullback is down
about -2.2% so it's still a ways from the max historical of -3.3%,
and if one were to use a stop of say -3.5 to -4% to give it ample
room it's quite a ways away.
Otherwise the max historical trade draw down in the entire
system is about 10%, that's across all sub systems. so if one
wanted to use that as a guide, that's a long way away.
again your choice if you wish to use those are not. But
otherwise the system will exit on a bounce
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Is there a hard stop
Posted by bulf6285 on 10th of Oct 2018 at 10:36 am
Is there a hard stop on the SPY Pro trade?
one of you always asks
Posted by matt on 10th of Oct 2018 at 10:56 am
one of you always asks this every time the system is in a trade after a draw down like clockwork, has been covered many countless times before. Anyway I was going to point you to the FAQ as I thought it was discussed there but I don't see it, so I need to add paragraph section, again I'm sure it was on the old site, must not have gotten ported over.
anyway the Breakout Sub system has a tradition hard stop. The other reversion to mean sub systems do not, they exit bad trades on a bounce. Testing has always showed that it was better to exit on a bounce than on a sheer hard sell off where you tended to stop out at lows.
Otherwise one could use some of the statistical information as a guide for a stop loss. The Strong Trend Shallow Pullback sub system, which first triggered the system long, in the first past had a max draw down of -3.3% on the 1st entry. One could use that as a guide placing a stop wider than that. The current first entry on the strong trend shallow pullback is down about -2.2% so it's still a ways from the max historical of -3.3%, and if one were to use a stop of say -3.5 to -4% to give it ample room it's quite a ways away.
Otherwise the max historical trade draw down in the entire system is about 10%, that's across all sub systems. so if one wanted to use that as a guide, that's a long way away.
again your choice if you wish to use those are not. But otherwise the system will exit on a bounce