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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Vicky- I really need to
Hello, Can anyone tell me how Smart Trailing Stops are ...
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