Registered User Joined: 1/25/2006 Posts: 4
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Is the Volatility Stop the best tool to use for setting stops? Has it been backtested? Is there a way I can backtest it? Any other stop tool that I should use? I am new and really impressed with TC2000
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Registered User Joined: 7/30/2007 Posts: 1,072
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There are many folks here that are waaay more qualified to address this topic, but since the Blackhawks don't drop the puck for about 20 minutes :) ...
Most will agree there is no one "best" tool for setting stops. The quick answer is: it depends. On your personality, available funds, trading style, risk aversion, etc. It's a big topic, and some traders (Dr. Alexander Elder for one) have written entire books just on stops and exiting trades.
I'm not aware of a backtesting feature in TC2000. That's #1 on my Christmas Wish List, but I'm going to have to settle for a new set of golf clubs.
Good luck!
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Registered User Joined: 9/10/2010 Posts: 10
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no such thing as "best" although if you believe in the average true range of a stock, it is a great visual to help you gauge when you should exit...time frame is key though along with using a stop intraday or as of the closing price...it gets pretty complicated but the key is for you to make it simple...you have to find your comfort zone and then pick an appropriate stop that helps you manage risk which is the key...
you can google average true range and you'll find some great studies that can guide you
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