Quote:
Originally Posted by kaalilaatikko
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.
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We're definitely on the same track here. I was thinking of using VSTOP when in a profit, but was also contemplating that once the order was executed, if you set a stop loss that is C*ATR (C is somewhere between 1 and 2) below below entry point, how that'd impact the big losers. I'd think that if it was gonna be a winning trade it would normally go your way before it drops too far, but this would provide a "safety net" in the event its going against you. I've gotta find some time to look at the data, but work is burying me this week. Hopefully after the end of July my load will lighten up and I can focus more on my trading.
At this rate, I might have a "trading holiday" next week as I'm going to be travelling and unable to have access to the web most of the day.