| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 10/7/2004
Posts: 16
|
I would like a PCF formula to calculate trailing stops. My formula is:
Take the difference between the high & low of today, do this for 10 days total, add the the figures, divide by 10 to get the average of the past 10 day differences of the high & low spread prices, add 25%, plus 1 = trailing stop. Then once I purchase the stock I will know where to place my stop.
Do you have any other formulas for trailing stops?
Karl
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Do you want use the average of the difference:
((AVGH10-AVGL10)+ ((AVGH10-AVGL10)*.25))+1
or the average value of the center of the daily spread (half-way between the high and the low)?
((AVGH10-AVGL10)+ ((AVGH10-AVGL10)*.25)+1)+L
I must not understand what you are asking for. The first creates a very small number, the second creates a number above the close (unless it is a stop on a short, if so it might be right).
Can you pick a stock out and give me the number it should return? I am misunderstanding something. I need you to look over you post and elaborate for me.
- Craig
Here to Help!
|
|
Registered User
Joined: 10/7/2004
Posts: 16
|
Craig,
Here is an example of the stop formula:
Symbol AEOS 3.9.05 Close Price 28.80
3.9.05 High 29.25 - Low 28.75 = .50
3.8.05 High 29.50 - Low 28.66 = .84
3.7.05 High 29.10 - Low 28.79 = .31
3.4.05 High 29.25 - Low 28.75 = .50
3.3.05 High 29.23 - Low 28.75 = .48
3.2.05 High 29.58 - Low 28.41 = 1.17
3.1.05 High 27.19 - Low 27.11 = .71
2.28.05 High 27.15 - Low 26.45 = .70
2.25.05 High 27.24 - Low 26.63 = .61
2.24.05 High 26.93 - Low 25.95 = .98
Total 6.80/10=.68+25%=.85+1=1.85
Close Price 28.80 - 1.85 = 26.95 Stop Price
This is the formula I would like created.
Thanks,
Kash
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
The last part where you subtract the value from the close is what I was missing from your original post....
Here you go:
C-((AVGH10-AVGL10)+((AVGH10-AVGL10)*.25)+1)
(corrected version)
- Craig
Here to Help!
|
|
Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
|
You might find it helpful to review this thread:
Trailing-Stop Applications in TC
Please note that trailing stops are normally based on the highest price since entry ... so just subtracting the value from the Close will not do the trick, unless you are breaking the cardinal rule of "never lower your stop".
Jim Dean
|
|
Registered User
Joined: 10/7/2004
Posts: 16
|
Craig,
Something doesn't add up.
I used the PCF for the symbol AV it should be 12.24 as of close yesterday. Your answer is 14.11, which is higher than today's price.
After I purchase a stock, I wait until close of market then set stop. Recalculating the stop each day after close, only to raise stop, never to lower it.
Can you check the formula again?
By updating in the middle of the market today provide a wrong figure?
Kash
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Not enough parathesis, it was not doing the subtraction from the close as the last step. Corrected the formula above.
- Craig
Here to Help!
|
|
Registered User
Joined: 10/7/2004
Posts: 16
|
Craig,
I tried the PCF on AH, the PCF calculates today's stop @ 38.42, I compute it as 38.01
Kash
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Double check the formula you are using. I used the formula (same as above):
C-((AVGH10-AVGL10)+((AVGH10-AVGL10)*.25)+1)
On AH based on today's closing data and got $38.01
- Craig
Here to Help!
|
|
Registered User
Joined: 10/7/2004
Posts: 16
|
Thanks,
Kash
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Worked?
- Craig
Here to Help!
|
|
|
Guest-1 |