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Old 16-02-2015, 07:04 PM
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Default stop loss

Hi

Many traders place stoploss and trail stoploss based on the observation.
I was reading IFTA 2012.
controlled stoplosses are two types:
1.static
2.Dynamic

Static control stop loss :
Initial stop spread = price*(% drawdown/100)
For a long position the stop loss = Entry price – Initial stop spread
Subsequent stop loss = closing high price since position inception
– Initial stop spread
The main drawback to using the Static technique is that if a
security doubles in price then the absolute drawdown will only
represent half the original move that the initial stop loss was
based, this could increase the risk of being whipsawed as the
stock price increases.
Using another example: a long position in Marco Telecom was
initiated on the 31st of August 2010 at the closing price of 145.5
MAD, a 7% stop loss was used giving a stop loss of 135.3 MAD,
thus the initial stop spread was equal to 10.2 MAD (the
difference between the entry price and the stop loss).
The highest close was on the 28th of February 2011 at 159.90,
the trailing stop flat lined at 149.70 MAD (highest close – initial
stop spread). The stop loss was triggered on the 20th of May 2011
when the price closed below the stop loss at 146.55.
Both techniques will be investigated to see if there is any
empirical evidence to support either technique as the preferred
benchmark.

Dynamic control stop loss:

Initial stop loss = Price * (100-stop %)
If (Price*(100-stop %)> SL) SL=Price*(100-stop %)-i.e. raise stop level
If Price<SL then Exit Position.
Using an example, a long position in SABIC was initiated
on the 8th of July 2009 at a closing price of 56.00 SAR, a 10%
stop loss was used, the initial stop loss was 50.40 SAR (=90%
of 56.00). As the closing price rose so did the trailing stop loss;
when the price retreated the stop loss flat lined. The trade was
closed on the 16th of May 2010 at the closing price of 95.625, as

BOTH of the cases have demerits.
Volatility Adjusted Stop Loss (VASL)

can anyone provide good info to clarify VASL

NB:- there should be a good controlled SL mechanism when we think about a methodical trading , bcz market has a nature always to mis-behave.
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nTuple

Disclaimer: I am not a Research Analyst and not registered with any regulating authority. All posts are for educational purpose only.

Consider us a dumb -dumble guy in this analysis, any type of real time example will be quick-learn approach.

Last edited by nTP; 17-02-2015 at 02:49 PM.
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Old 07-03-2015, 10:41 AM
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Default

Well Tuple ,
I wish to continue my ramblings here in continuation of GFDL RT data thread .
The profitability of a trader does not mainly depend on platform nor datafeed unless he trades in lower TF . Of course it helps a lot .
If you are trading on Eod charts and taking delivery , what you need is just Nse bhav copy . You are having all the platforms in your hand . Even if you want to own Amibroker it is not much costly . Ninja is free .
What you need is a good strategy , some money and money management .
You wont believe me , but this is the truth . Between 2007 -2009 I made good chunk of money just with metastock. I was not aware of any other platform then and
I did not know how to write a single line of formula (till date I dont ) . Just I followed the MS advisers blindly and made money .
You are better than me in every way , including programming knowledge . But you make yourself a fool by running after various SWs and indicators and many more
Just stick with one platform and try to find a good strategy + backtest it +Optimise it+stick to that+have some money management = Tuple a super trader .
Best of Luck
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Last edited by Sunshine; 07-03-2015 at 10:45 AM.
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Old 07-03-2015, 01:09 PM
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Default

Originally Posted by Sunshine View Post
Well Tuple ,
I wish to continue my ramblings here in continuation of GFDL RT data thread .
The profitability of a trader does not mainly depend on platform nor datafeed unless he trades in lower TF . Of course it helps a lot .
If you are trading on Eod charts and taking delivery , what you need is just Nse bhav copy . You are having all the platforms in your hand . Even if you want to own Amibroker it is not much costly . Ninja is free .
What you need is a good strategy , some money and money management .
You wont believe me , but this is the truth . Between 2007 -2009 I made good chunk of money just with metastock. I was not aware of any other platform then and
I did not know how to write a single line of formula (till date I dont ) . Just I followed the MS advisers blindly and made money .
You are better than me in every way , including programming knowledge . But you make yourself a fool by running after various SWs and indicators and many more
Just stick with one platform and try to find a good strategy + backtest it +Optimise it+stick to that+have some money management = Tuple a super trader .
Best of Luck

umm... You want to stop the free flow of free softwares for us ??

Joke apart my needs are very limited and metastock is best for my logbased charts for ewaves. But traders evolution never stops. Quest for new knowledge will never stop.

Last edited by Vinay; 07-03-2015 at 01:13 PM.
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Old 07-03-2015, 01:28 PM
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Default

Originally Posted by Sunshine View Post
.......................................
But you make yourself a fool by running after various SWs and indicators and many more
......................................

But its eventual way of understanding the truth.

Without stucking your head to wall you wont experience how hard it is.
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Old 07-03-2015, 03:55 PM
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Default

Originally Posted by Sunshine View Post
Well Tuple ,
I wish to continue my ramblings here in continuation of GFDL RT data thread .
The profitability of a trader does not mainly depend on platform nor datafeed unless he trades in lower TF . Of course it helps a lot .
If you are trading on Eod charts and taking delivery , what you need is just Nse bhav copy . You are having all the platforms in your hand . Even if you want to own Amibroker it is not much costly . Ninja is free .
What you need is a good strategy , some money and money management .
You wont believe me , but this is the truth . Between 2007 -2009 I made good chunk of money just with metastock. I was not aware of any other platform then and
I did not know how to write a single line of formula (till date I dont ) . Just I followed the MS advisers blindly and made money .
You are better than me in every way , including programming knowledge . But you make yourself a fool by running after various SWs and indicators and many more
Just stick with one platform and try to find a good strategy + backtest it +Optimise it+stick to that+have some money management = Tuple a super trader .
Best of Luck

https://www.youtube.com/watch?v=MkG2bhsbil4
__________________
thx
nTuple

Disclaimer: I am not a Research Analyst and not registered with any regulating authority. All posts are for educational purpose only.

Consider us a dumb -dumble guy in this analysis, any type of real time example will be quick-learn approach.
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Old 07-03-2015, 07:19 PM
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Default

Originally Posted by Vinay View Post
Joke apart my needs are very limited and metastock is best for my logbased charts for ewaves. But traders evolution never stops. Quest for new knowledge will never stop.

Are you not able to get the same type of log scaled charts using amibroker?

-- no1lives4ever
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Old 07-03-2015, 09:05 PM
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Originally Posted by devdas View Post
But its eventual way of understanding the truth.

Without stucking your head to wall you wont experience how hard it is.


Its the LOOP, to come out of it takes a lot of (......), fill in the blanks as you wish
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Old 07-03-2015, 09:18 PM
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Originally Posted by no1lives4ever View Post
Are you not able to get the same type of log scaled charts using amibroker?

-- no1lives4ever

Log charts are there in ami but have liked MS for that purpose
most.
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Old 07-03-2015, 10:57 PM
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stoploss mechanism ke liye pucha tha bhai ... platform nehi ?
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nTuple

Disclaimer: I am not a Research Analyst and not registered with any regulating authority. All posts are for educational purpose only.

Consider us a dumb -dumble guy in this analysis, any type of real time example will be quick-learn approach.

Last edited by nTP; 07-03-2015 at 11:11 PM.
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Old 08-03-2015, 02:13 PM
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Stoploss should be based on sound technicalities, well dont ask me to explain, it will take few paragraphs to explain.
But revising stoploss based on one's freewill is a strict no no, it may save a losing trade once in a while, but will eventually eat your accounts.
There are many ways to go for Volatility based Stop loss, for example ATR based ones, any standard book have explanation about all these.
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