Trailing Stops |
Once
you have determined trend, entered a market and placed your initial protective
stop, you must decide where to take a profit. Reliable trailing stops
can make the difference between big profits and small profits. All too
often we nervously grab a small profit on the first reaction only to see
the market take off once we are stopped out. The ProfitTrader™ trailing
stops are designed to follow prices as closely or as far away as your
trading temperament dictates. They provide the flexibility to follow prices
into a trading cycle reversal with a tight stop to minimize profit give
back, or to give a market room to let profits run in the really big moves. |
The ProfitTrader™
Short-term Trail Stop Indicator is a fast moving mathematical stop to
lock in a quick profit, often as a trading cycle reverses. The Long-term
Trail gives a market more room for price fluctuation to trail the bigger
moves. Using these stops eliminates the need to wait for a trading signal
in the opposite direction, or the constant re-evaluation of mental trailing
stops. |
ProfitTrader™
Trailing Stops lock in profits from cycle tops and bottoms in all time
frames, in all markets. |
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Multi-Bar
Trailing Stop and Entry
The
Multi-bar reversal was initially designed as a trailing stop, but
can also be used as an entry signal, or confirmation of a mechanical
entry signal. Used with the HAL OB/OS Bands or at extremes of the
Double Stochastic oscillator, the default 2-bar will stop out of
an existing position close to a cycle bottom or top. It can also
be used as a stand alone entry signal or as confirmation of a mechanical
Double Stochastic, BLine or OB/OS trading signal.
The
trailing stop prices for the current price bar show as colored dots
that follow the market up and down during real-time trading. They
can be turned off to show only the entries generated by the actual
reversals.
The
most significant Multi-bar reversals occur within the HAL OB/OS
Bands, and at extremes of the Double Stoc oscillator. |
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| When
used to enter a trade at cycle tops and bottoms, a protective stop
goes above the cycle top for trades on the short side; below the cycle
low for trades to the long side. |
| Walter
has used 2-bar reversals in his trading for years as trailing stops
in different markets and time frames. You may find a 3 or 4-bar, or
longer, reversal to be more suited to your trading style. |
| The
Multi-bar Trailing Stop and Entry plots as dots on the price bars.
The cyan dots are the stop out prices in a rising market; the purple
dots, the stop out prices in a declining market. The larger green
dots show a sell reversal; the red dots, a buy reversal. |
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Dynamic
Short-Term (ST) Trailing Stop
This stop is designed to stop out a position following
a trading cycle top or bottom. When entering a market the initial
protective stop should be placed below the trading cycle bottom
if long, or above the trading cycle top if short. Once a market
starts moving away from entry, the Short-Term Trailing Stop follows
prices closely until the trading cycle reverses, often accelerating
to stop the trade out near the extreme of the reversal. |
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Dynamic
Long-Term (LT) Trailing Stop
Designed to let prices back and fill, this slower
trailing stop will follow a market for the bigger moves, often stopping
out at the second trading cycle top/bottom, or simply trailing a
market until the move is over
The
Dynamic Long-term Trailing Stop defaults to a green line following
prices up or down. |
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