Hello, Can anyone tell me how Smart Trailing Stops are meant to
be used... Are these hard stops, or the close of the day is what
matters regardless of what happens intraday? Thanks.
Vicky- I really need to do a video and discussion about the
STS tables etc, it's on my agenda to do
that said for me personally I like to use the STS as hard stops
(I may give more wiggle room to them personally depending on what I
see in the market, or I may use it as a mental stop and watch the
market action if that stop gets hit to see if I wish to exit or
not. Quite often the stops can be hit intra day for a short
time then price reverses back up, so I am cognizant of that and try
to avoid it. I've also stopped out before and simply went
back long if price happened to close back above the STS that day -
I know some don't like that for tax reasons, but for something like
my IRA tax free account where I hold those market ETF's, tax is not
an issue obviously, so that does not weigh my decision.
When the systems first go long: sometimes price is VERY far away
above the ATR's, which is why we display the % away from the ATR in
the columns. If price is too far, and what is too far is also
subjective -in my observations >10% or 15% away, I will wait and
try to buy a pullback instead, and I'll use intra day charts such
as 2hr, 60 min, 30 min to look for some sort of 3 wave abc like
pullback
not all 1st entries start off far from the ATR: The system has
built in where it looks for ABC 3 wave like pullbacks and for those
it will go long well before price even breaks the ATR, those are my
favorite entries. There's also a washout reversion to mean entry
- but those are very very rarely triggered, on the SPX only
occurred like 5 times over 25 years
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Hello, Can anyone tell me
Posted by vicky on 18th of May 2023 at 08:47 am
Hello, Can anyone tell me how Smart Trailing Stops are meant to be used... Are these hard stops, or the close of the day is what matters regardless of what happens intraday? Thanks.
Vicky- I really need to
Posted by matt on 18th of May 2023 at 09:09 am
Vicky- I really need to do a video and discussion about the STS tables etc, it's on my agenda to do
that said for me personally I like to use the STS as hard stops (I may give more wiggle room to them personally depending on what I see in the market, or I may use it as a mental stop and watch the market action if that stop gets hit to see if I wish to exit or not. Quite often the stops can be hit intra day for a short time then price reverses back up, so I am cognizant of that and try to avoid it. I've also stopped out before and simply went back long if price happened to close back above the STS that day - I know some don't like that for tax reasons, but for something like my IRA tax free account where I hold those market ETF's, tax is not an issue obviously, so that does not weigh my decision.
When the systems first go long: sometimes price is VERY far away above the ATR's, which is why we display the % away from the ATR in the columns. If price is too far, and what is too far is also subjective -in my observations >10% or 15% away, I will wait and try to buy a pullback instead, and I'll use intra day charts such as 2hr, 60 min, 30 min to look for some sort of 3 wave abc like pullback
not all 1st entries start off far from the ATR: The system has built in where it looks for ABC 3 wave like pullbacks and for those it will go long well before price even breaks the ATR, those are my favorite entries. There's also a washout reversion to mean entry - but those are very very rarely triggered, on the SPX only occurred like 5 times over 25 years