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ProfitTrader™ TRAILING STOPS

Reliable trailing stops can make the difference between big profits and small profits.

Once you have determined the trading 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.

ProfitTrader™ Trailing Stops lock in profits at cycle tops and bottoms in all time frames, in all markets.

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 Multi-bar Trailing Stop and Entry for the current price bar shows as colored dots that follow the market up and down during real-time trading. The dots are the stop out prices in both rising and declining markets that can be turned off to show only the entries generated by the actual reversals.
The larger green dots show a sell reversal; the red dots, a buy reversal.

The most significant Multi-bar reversals occur within the Timing Bands, and at extremes of the DoubleStoc oscillator.

 

When used to enter a trade at cycle tops and bottoms, an initial protective stop should be placed above the cycle top for trades on the short side; below the cycle low for trades to the long side.

Walter 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.

Dynamic Short-Term (ST) Trailing Stop
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.

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.

The stop price for the next price bar shows at the bottom of the Data Window; but you must add or subtract the Safety to determine the actual stop out price, which includes the Safety.

Next: TIME CYCLES: Cycles are the Most Accurate Technical Tools for Forecasting Future Tops and Bottoms