Swing Trade EXITS...

[dougcs]

Sorry, I meant to include the Parabolic Stop code that I use. It is Tradestation's "EasyLanguage" code which is not easy.


inputs: AccFactorStep( .02 ), AccFactorLimit( 0.2 ), ATRLength( 21 ), NumATRs(6.0) ;

variables: ATR(0),MP(0), LX(0), SX(0), AF(0), TradeHH(0), TradeLL(0) ;

atr = average(truerange, atrlength);
MP = MarketPosition ;

if MP = 1 then begin
if MP[1] <> 1 then
begin
LX = Low - ATR * NumATRs ;
AF = AccFactorStep ;
TradeHH = High ;
end
else begin
if High > TradeHH then TradeHH = High ;
LX = LX + AF*(TradeHH - LX) ;
if TradeHH > TradeHH[1] and AF < AccFactorLimit then
AF = AF + MinList( AccFactorStep, AccFactorLimit - AF ) ;
end ;
if LX > Low then lx = Low ;
Sell ( "ParTrLX" ) next bar at lx stop ;
end ;

if MP = -1 then begin
if MP[1] <> -1 then begin
SX = High + ATR * NumATRs ;
AF = AccFactorStep ;
TradeLL = Low ;
end
else begin
if Low < TradeLL then TradeLL = Low ;
SX = SX - AF * ( SX - TradeLL ) ;
if TradeLL < TradeLL[1] and AF < AccFactorLimit then
AF = AF + MinList( AccFactorStep, AccFactorLimit - AF ) ;
end ;
if SX < High then SX = High ;
Buy To Cover ( "ParTrSX" ) next bar at SX stop ;
end ;

 

[MondoTrader]

I establish an initial stop based on how much I am willing to lose on the trade, Victor Sperandeo style. If the position is working I switch to a trailing stop that is the same distance as my initial stop but of course it follows the price up.

 

[gms]

I think Mr. Hershey's posts are hard to understand, not because his techniques are convoluted, but because he does not have the advantgae of an editor rewriting his posts for clarity and readability. I have found that using a pyschological technique, however, to induce a state of consciousness for me that permits acceptance of this material into my pysche, so that it is more absorbable, allows me at minimum to delve into the material as written. It's a self induced technique, you're free to borrow it, that is triggered by uttering a mantra. When I want to try to understand his work, I say, "Jack On!", and when I'm done with that, I say, "Jack Off!".