Quote:
Originally Posted by chdorry
I'd agree that you wouldn't want to use them both at the same time, but then again Wilder even states you can tweak the constant as you see fit.
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Just making sure that we are talking about the same thing: "not to use them both at the same time" = not to use VSSTOP(2) for both entry and exit.
Quote:
Originally Posted by chdorry
Jay - If you're using VSSTOP as a trailing stop, that would set it to a multiple of ATR. I was thinking that using ATR (or some multiple of ATR between 1.0 and 2.0) might prove beneficial in some of these trades as most losers go for you and then turn south before making it past the 3*ATR minimum in your direction to get you "locked in" by the VS system. My initial backtesting (using C=3) shows that things either go well for you, well against you or stay pretty flat. For you and flat don't hurt, but those moves against you really can put a damper on your profits (and your emotional mindset).
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I think that we are on the same track here. The more I think it here the more I feel that you should use VSSTOP for exit only when it is locking a profit. My backtesting without VSSTOP showed that if you entered at every SAR, for some pairs VS was excellent but for some other lousy, the optimal C being around 2.7 ... 3.1 depending on the pair. A big question here is how to select the good trades, so that you could trade virtually any pair.
Quote:
Originally Posted by chdorry
I'll try to do a little bit of backtesting (been using excel, not sure if you have a better way?)
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I coded a program that imports the historical data directly from Delta, calculates the signals and vomits the analysis. C and number of days are given as parameters. I think this is a quicker way to test a huge number of parameter combinations with a huge number of pairs. But I suppose the same could be done with Excel, for me doing this by coding was much more straightforward.
Quote:
Originally Posted by chdorry
BTW - Anybody know what it takes to move from "Newbie" to whatever the next level is?
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I guess your 50th post earns you a promotion as a "Junior".
J.