I'm not speaking to the current market state (I have to think we're going to find the bottom soon and have a rebound), but I've been meaning to ask;
Does the author recommend any stop loss settings? The market generally crashes faster than it rises (fear>greed), and a national or international crisis (ie an attack on the US) could cause a major intraday impact on leveraged position that is long the market.
If you have the ability to set a SL (or take-profit for that matter) with your broker, would you recommend it and, if so, what settings would you recommend?
Thank you!
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Dude, I've tried that and what ends happening is you get better exits even though they might be losing exits later in the trade.
May 6th, 2010 was a day after my divorce and the brokers at Waddell and Reed saw me place a trade on a website I shant name out of respect to the tos but anyway it wasn't till years later that I found that they had sold 75k s&p short based on my sell signal I gave on that website so I stick to EOD systems and don't try to react as anything but entertained to the newsflows.
I realize that a national security incident could happen but I doubt unless it's Armageddon we have any worries there.
Cheers!
Thanks for participating in the forum which I encourage others to do in the future!
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Thank you very much for the input. I was thinking along the lines of a very loose stop loss for sharp movements that far exceed the range of normal. I definitely can commiserate with you on stop losses causing issues but didn't know if there was a point where a stop loss could make sense. However, it sounds like that's not the case. Very impressed by the system so far and how about that rally today?!! I have an inkling that your system may be at its most profitable during periods of high volatility and VIX definitely seems to be on an uptrend!
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I Actually DO have a default that if the continental United States is ever attacked with Nuclear Weapons to have a failsafe to just sell whether we are short or long synthetically.
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