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Old 09-07-2007, 06:31 AM
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Re: Trailing stops vs that other way

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I found something that works. I put a basic trailing stop based on the old 10 period 3 Average True Range behind my position. It only kicks in after I am a "bit" in profit so I don't get shaken from the trees by a wiggle. I then manage the trade by exiting parts of the position based on my trading plan but use the ATR as my drop dead stop.

10/3 ATR is good because it takes the volatility of the last 10 bars as its basis. Some people don't use anything but the ATR to manage the trade.

I fiddled with the numbers of the ATR but 10/3 (which is pretty standard stuff) seems to be the best for me.

So if you put a Keltner Channel, which should be based on ATR, on your chart, with a setting of 10/3, this should show where your stop should be placed, correct?

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