Philosophy from the importance of the city and a number of ways Money Tips

Category: Money tips Release Date: 2006-04-16

In the transaction process, some parts are relatively easy to control, and some part of the relatively difficult to control. For example, we can be very easy to control timing. Experienced traders can control because of the basic impulse of the market, because knowledge and experience for traders, traders can set up a number of conditions, when the market to satisfy the conditions on the market, otherwise the refusal to deal. Obviously, in the trading market timing of the election process, only those who are traders with their own control. Looking for a good entry point is not easy, the entry point is not perfect, but at this point there is a dealer's control. Such transactions may request must meet the two indicators commonly used parameters and a filter, or sitting the computer side of tea.

But once into the transaction, control will change. Once inside the market, certainly within a certain period of time must be rescinded. Now the turn controlled by the market, giving traders a surprise or a failure.

As a situation away from the city, stop-loss is a psychological problem but hardly can be considered a control problem, because the traders (in addition to the unwinding of large-value transactions arising problems) can simply be controlled by setting the stop-loss point of loss. Very often the face of stop-loss points are triggered, traders may feel calm because they can out of the deal. The loss depends on the number of traders on the performance of the system, but the size of the losses on each trader has the absolute control.

The face of profit, traders control over the small, significant control over the market. Trader can be done, for example, are generally looking to prevent the loss of profit or become smaller. Dealer can not force the market to 200 points of profit, but it can ensure that once those earnings, they close out positions or engage in the protection of 50% of the profits of the trailing stop strategy, with some profit for the price to find a greater profit opportunities.

Equation with an expression, you can use the security of capital, "possible opportunities" a profit of 50% to express the above point of view. Such views can have different parameters for each person. The same market, because from the city will produce different success or failure.

On the protection of profits, most people would think of a very tight stop-loss? In fact, there are many cases early in the transaction should use a more relaxed stop-loss order to guarantee a certain market clutter tolerance, and as the trend started profit increase, and gradually tighten the stop loss to protect profits.

Stop tracking is a very wide range of methods should be. Most of the tracking stop-loss is designed to achieve the purpose of profit to continue to expand, therefore, these tactics used in the trend-tracking system on the most effective. In the counter-trend trading system, using a fixed profit exit strategy be more appropriate. "As soon as there is profit, put it into the pockets" of the transaction concept is very suitable for counter-trend trading, because the expected return is limited. However, if the transaction is along the trend, then the "pocket immediately profitable" behavior makes you feel disappointed: In order to find the trend to pay a certain price (usually a lot of small, stop-loss), with its small profit out of the market, and then watched its market in the next few days or months, to continue toward the direction of our trade out of a very spectacular trend.
A fixed profit exit relatively easy to implement. The way to stop tracking the general needs of slightly more complicated way.

Here's a stop with the ATR method for mobile

ATR Ratchet is taken from an article tradeclub.com 1999 years (by Chuck LeBeau)

(ATR: the average daily volatility of the euro is probably 80-150, GBP is probably 100-200. And common difference in the number of%, this value in the intense period of volatility in different markets will change.) Basic idea is very simple, we we have selected a reasonable starting price, and then each day of a multiple of the ATR, get a tracking stop-loss point. Generated by this method can not only stop the increase over time, constantly on the move but it can also adapt to changes in market volatility. With our previously used by the Parabolic SAR indicator get stop-loss points compared to the advantages are: the use of ATR Ratchet, we can more freedom of choice starting price and increase or decrease in speed. In addition, we also found that ATR-based stop-loss point can be faster and more accurately reflect the changes in volatility, so that we can stop method than the traditional tracking lock in profits.

For example, when we 1ATR earnings above goal is achieved, we choose a recent low point (such as a recent low of 10 days) as the starting price, then the number of days according to our position zero several times a day would be the lowest increase in the ATR (such as 0.05ATR). If we have to hold positions for 15 days, then we 0.05ATR multiplied by 15 days, and then added to the starting price on the product 0.75ATR. 20 days, we will 1.0ATR (0.05 multiplied by 20 days) added to the lowest price on the last 10 days.

The strategy does not like the Parabolic SAR indicator, ATR Ratchet can be very easy in our transaction process at any time to use. We can enter the transaction on the first day to start using this stop-loss strategy may also be beneficial to the occurrence of certain events such as the use of only the winning strategy then. I would suggest waiting for a profit before using the stop-loss strategy, because, as you and I have seen this stop will be a favorable market environment, the rapid upward movement.

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Increase in volatility will stop the motion speed increases, this is an important feature of ATR Ratchet strategy. In a fast-moving market, you will see a lot of gaps and long K-line graph. When the market trend to accelerate market volatility will increase, thus a rapid increase in our profitability, when, ATR also increasing rapidly. Since we are going to start to increase the price of a certain number of ATR, so every increase in ATR will cause a sudden upward jump stop, stop-loss point becomes closer to the highest price after admission. If we have to hold positions for 40 days, then any increase in ATR will produce 40 times on the stop-loss point of impact. This is what we want. We found that, when the market gives us a rich a profit, ATR Ratchet stop will be a surprising move up quickly to a very good profit for us to lock the float.

This method has the following parameters: Start Price:

ATR Ratchet's a very nice feature is that we can set up any of our favorite places starting price. For example, we can be like as Parabolic SAR indicator is set in a number of important low starting price, we can also swing the bottom of the range, or support level, or a certain passage was at the bottom, or below the entry point where a certain number of ATR Set the starting price. If we wait until the book generated a considerable amount of profit, we can set the starting price is higher than the entry point in even places. This can be used in their own trading systems with the.

ATR Ratchet start time:

Given priority based on time rather than the price parameters (or a combination of time and price parameters) to enable the above-mentioned strategy away from the city. For example, we opened away from the city, if and only if a transaction of at least 10 trading days after opening the granary, and a profit of more than one ATR range. The general feeling, and only reached a considerable scale in the trading profit target after the ATR Ratchet is the best time to start. It appears to be a good strategy for profitable open positions, but must be noted that if a profit in a transaction before the start Ratchet might let you out early losing the opportunity.

As noted above, ATR Ratchet the most attractive point is its applicability and flexibility. Here's how to enable another idea Ratchet strategy. We can re-opening after 15 bars without having to ATRRatchet calculate the operation of the pre-15-step process. In the preparation of program code, we can set the transaction after the first 15 bars opening Ratchet and after the election of a bar chart of transaction amount minus 10 multiplied by the unit value of ATR, or with the transaction number of days after the election of first divided by a certain constant value and then multiplied by the ATR unit. This approach will simplify the calculation of Ratchet procedures, particularly early in the trading strategy for the first time the opening away from the city. Think of pondering ATRRatchet, you can see what the resulting number of creative thinking. Mobile ATRRatchet daily volume:

Has just begun to study the use of ATRRatchet tested that day, the amount of movement too. For our trading time frame, the big moving day ATRRatchet amount (a few percent of the ATR) will let us move up the stop point of over-fast. After a period of trial and error, we found that the number of days with our positions by multiplying the amount of movement ATRRatchet daily 0.05 ~ 0.10ATR (5% Zhi 10% ATR (20-day period)) let stop the upward faster than you imagined much faster.

As a workaround this strategy, we can use a smaller ATRRatchet in the initial amount of daily movement, and then once we get a great floating profit, we can use a larger amount of movement every day ATRRatchet.

ATR cycle length:

As we have previously found during the use of ATR, we used to calculate the ATR cycle length of time it is very important. If we want to ATR can quickly respond to market changes in short-term fluctuations range, we can use more short-term mean (for example, four only five K-line); if we want a more smooth, ATR, not sensitive to fluctuations in a day or two exceptions , we can use the long-term average (20-50 K line). I use at work, most of the ATR is 20 days, mean, unless I have good reason to hope that ATR has become more sensitive or less sensitive.

Summary: ATRRatchet as a profitable tool, we particularly like it gives us the flexibility of this.

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