Quote:
Originally Posted by kaalilaatikko
Dale,
do you place a stop for a VS trade according to VSSTOP immediately when the position is opened, or only then when VSSTOP is above BE?
J.
|
J - That green line you see on the chart is the same as the pink with the exception of the constant multiplier being 2 instead of 3 (or 3.1). My understanding of how its used is two ways:
1 - To get in earlier
2 - To get out earlier
As the VS is somewhat analogous to an "intelligent trailing stop", you will always see the green line SAR closer to the close than the pink line. So this can be used to SAR when the price breaks through the green line (instead of waiting for it to reach the pink). Using this on entry or exit can change the results you will get, as if you're long and you use the constant of 2, you'll be more responsive to a pullback that *might* not be a reversal of the trend.
Or in theory you could use the VSSTOP green line for exit, but use the pink line for entries into positions. The combinations are endless, and different approaches will yield different results with different pairs at different times :-)
Hope this helps (some).
Craig