Hi, Ok, so I am trying to figure out an appropriate methodology for attaching a set of exit conditions (stops and take profits) to a set of entry rules that I believe have merit. Previously I have always been using something like that following: Stop Loss: Fixed or ATR based Take Profit: Fixed or ATR based Trailing Stop: PercentTrailing after InitMove I have realized the following: 1) Trailing Stops are very dangerous as they backtest extremely well, but then once you backtest at the tick or minute bar level the profile is dramatically different. 2) There may be a better exit strategies that I am not considering. So my question is, once you have come up with some satisfactory entry rules, how do you come up with your exit rules w/o over optimizing/curve fitting? Specifically, I am interested in things like: a) Time Based Stops b) BreakEven Stops c) LeBeau stops d) Parabolic stops e) Indicator based stops etc... Other than brute-force, any ideas on any intelligent manner to come up with appropriate exits? Thanks. -S
Most indicators have the same problems when backtesting..... Another options is to use portfolio or market scanning software and only be active in the equities whith the best score s .... With that strategy you use the score as a trading signal. *If the score is above the score for a non-volative short bond fund => buy signal *If the score is below the score for the bond fund => sell signal The advantage is that you, depending on the software, can take several criteria into account and that the trading signals are quite stable. /Jossan
I have interest in the portifolio scan software could you offer the website of the software thank you