Hi KelvinHand
Thanks for the pointer.
I commented on that site becoz
I felt he forgot something really important
and better option than percentage based,sr based,ma based stops-the volatility based stop.
Technically, stoploss must be dynamic and adjust with market movements-volatility.
Using a FIXED percentage stop in low and high volatility market environment puts the trader at big disadvantaGE.
Yes,basically I prefer Volatility based stoploss above anything else.
The best is JIMBERG trailing stop which trails price at a distance of 2ATR.
This dynamic stoploss works best.
Of course there is another channel of thinking that the stoploss need to begin bigger at 3ATR initially and must taper down to 2ATR as price stops moving up.
The problem is two fold here.
First that
mentor was NOT ready to talk about stoploss percentage on hourly charts.
I know the percentage for hourly charts is to be less than 7%, but it doesnot go down in direct proportion.
To my view it may come to 4% or 5% for hourly charts based on my random observations for three stocks.
I agreed about 7% stoploss for daily charts as there is historic reference
of William O,neil,gradpa of american stockmarkets who saved millions by his this single tip.
----------------------------------------------------------------------
Here is percentage stoploss code.
This is part of silvian svapo system.
If anybody likes to experiment,he can change percentage setting from 7 to 10 or 4 or 5 in the parameters.
---------------------------------------------------
HTML:
//LISTING 3: Trailing stop reversal
stop = Param("Trailing Stop", 7, 0, 20 );
trail = Null;
for( i = 1; i < BarCount; i++ )
{
prev = trail[ i - 1 ];
Cur = 0;
if( prev == C[ i ] )
Cur = prev;
else
if( C[ i - 1 ] < prev AND C[ i ] < prev )
Cur = Min( prev, C[ i ] * ( 1 + stop/100 ) );
else
if( C[ i - 1 ] > prev AND C[ i ] > prev )
Cur = Max( prev, C[ i ] * ( 1 - stop/100 ) );
else
if( C[ i ] > prev )
Cur = C[ i ] * ( 1 - stop/100 );
else
Cur = C[ i ] * ( 1 + stop/100 );
trail[ i ] = Cur;
}
Plot( C, "Price", colorBlack,stylecandle );
Plot( trail, "Trailstop", colorRed );