- ago
I got this question:
QUOTE:
One question regarding your implementation of Bensdorp's System 3 Long Mean Reversion Selloff - he specifies a market-on-close order for taking profit, and you use a limit order. Why did you do that?


I checked the book, it clearly says:
QUOTE:
Profit taking: If profit is 4 percent or more based on the closing price, exit next day market on close.


I must have misread it -or- in the middle of the sentence I probably thought: "Wait, that makes no sense..." and got distracted....

the current implementation is more:
QUOTE:
Profit Taking: Place a limit order four percent above the entry price.


Would be interesting to see the difference in performance...
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