In any trader's learning career, whether CW or otherwise, washes are a consequence of the trader's routine. OODA prevails for CW. We use MADA. The cardinal rule of any successful trader is to keep current on market sentiment for the fractal upon which he trades. This is the most objective and unequivocal JOB of any purposeful learning potential trader. A wash trade is the "last opportunity" a trader has to ACT as a reconcilliation of his position relative to the sentiment. Other wise he pays a premium. It is de facto that CW traders set stops without regard to sentiment. If they did, they would always have stops out as wash trades. The CW trader replaces a rational set of priorities with a strategy that comes from somewhere. Inductive thinking is usually the erroneous reasoning basis. Obviously, the CW setting of stops based on a strategy and the OODA routine of conducting trading always puts stops on the other side of the horizontal "wash line" which is the worst case sentiment reversal horizontal line. Worst case means "last opportunity". CW traders hold that discipline is more important than recognizing CW inductively determined rules lead to systemmic failure. Monitoring market sentiment is a front runner of the "wash" trade. were a CW trader to use OODA to ACT on sentiment change he would begin to recognize the identity of an exit and an entry on the opposite side. Trading using edges ignores sentiment and ACTing in OODA to always be on the correct side of the market. If CW ATS's all had override scripts regarding sentiment delta there would be no concept of enduring drawdown nor being whipsawed in what CW calls and defines as "chop". Wash trading daily for beginners in midday periods is SOP for beginner learners. Timid people can draw horizontal lines at prices of the day and determine that price passes through a given value most often more than once. these mental drills can lead a person to rationality and allow them to discontinue inductice thinking at some point. It is like a haze lifts when a person turns to sentiment as a guide and drops the inductive edge searching experimentation that focussed on market anomalies. At some point a critcially thinking person comes to consider whether anomalies or inefficiencies actually exist. Taking their perceived measure as a person moves frward, changes as skills and knowledge advance. they dissapear at some point when studying market price and volume movement bcomes oriented to market sentiment. Somewhere along the line, the relationship of sentiment and P,V patterns gains utility. Here the discoveries of the interelations of fractal (that all contain the same pattern) assure the interlocking nature of fractals. Stops have long ago left the picture at this phase of critical thinking and positing systemmic structure, process and results attainable. The issue of catastrophic market conditions is never really a factor. Tests of their pending arrival are always available. Markets do not jump around but migrate from operating point to operating point. Catestrophic non market externalities that impinge on market cannot be remmedied by market tools nor trader tools and strategies. Your question about stops and wash trades is an early one that comes up on the learning path. It dissapears when the consideration of sentiment arrives as part of the data set of doing either OODA or MADA as a routine. The majority of traders have no routine as is observable. CW trading is a dilemma because of its priorities and how the strategies, effectively, ignore market sentiment for given market operating points. It FOMC time....gotta go...
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Long story short,Gpan; trade/invest for 7 years & note, depends on the time frame. But even more so, to put the fund/tek /proper position size chances in your favor ; bulls live above the 200dma, bears below 200dma.