日本語
Español
中文
Русский 
- New York 23:20
- London 04:20
- Barcelona 05:20
- Tokyo 13:20
- Sydney 15:20
8
4
Using trailing stops in a trading System
Mon, Sep 22 2008, 13:48 GMT
by The Trader's Journal Collaborators
This article is taken from the Trader's Journal magazine (September 2008 issue)
The author, Charles ‘Chuck’ LeBeau, began trading his first commodity system in 1963 and has been an active systematic trader in the stocks and futures markets for more than forty years. He is the co-author of Computer Analysis of the Futures Market (McGraw-Hill, 1991). It is considered to be a classic work in technical analysis and is published worldwide in seven languages.
- Chuck LeBeau discusses the use of exit strategies in designing a trading system. In this installment, he discusses the use of the “Channel Exit.” This method takes a popular entry strategy and applies it to exiting the market with a trailing stop
The necessary precautions have been taken to avoid catastrophic losses by using disciplined money management stops. Now, it is appropriate to concentrate on strategies that are designed to accumulate and retain profits in the market. When properly implemented, these strategies are intended to accomplish two important goals in trade management – they should allow profits to run and at the same time, they should protect open trade profits.
While their application is extremely wide, we do not believe that trailing stops are appropriate in all trading circumstances. Most of the trailing exits we will describe are specifically designed to allow profits run indefinitely. Therefore, they are best used with systems that are trend following.
____________
Other article in this issue:
Published on Mon, Sep 22 2008, 13:48 GMT
DPR International Pte Ltd
| One Raffles Place, OUB Centre #18-01, Singapore 048616
http://www.tradersjournal.com | editor@traders-journal.com
Legal disclaimer and risk disclosure
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the authors and the publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. In commodity trading, as in stock, and mutual fund trading, there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade and your ability to bear the financial risk of losing your entire investment. It should not be assured that the methods, techniques, or indicators presented in this magazine will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in this magazine are for educational purposes only. This is not a solicitation for any order to buy and sell. The information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed as to accuracy of completeness, and is subject to change without notice. The risk of using any trading method rests with the user.Related reports
Trading Broadening Top/Bottom Patterns by The Trader's Journal
Mon, Nov 23 2009, 15:28 GMT
Lessons from the Pros - Futures - Managing Your Trade with ATR by Online Trading Academy
Tue, Nov 17 2009, 13:25 GMT
Lessons from the Pros - Conventional Technical Analysis Strategies, A Flawed School of Thought by Online Trading Academy
Tue, Nov 17 2009, 13:19 GMT
Lessons from the Pros - Forex - When Trading Becomes Gambling... by Online Trading Academy
Tue, Nov 17 2009, 13:18 GMT
They can... what about me. Forex opportunities by Investija.com
Thu, Nov 5 2009, 14:00 GMT
Related content
US Trade Rep: Must Commit To Ambitious, Balanced Doha Accord
Dow Jones | Thu, Jun 25 2009, 12:01 GMT
POLL-Japan trade surplus seen down 62.7 pct y/y
Thomson Financial News | Mon, Oct 20 2008, 22:18 GMT
Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.