Go to Jeff Salisbury LWGate Home Page.From: "Rolf Hertenstein" <rolfh@mindspring.com>
Subject: Re: [CANSLIM] Trailing Stops
Date: Thu, 19 Jun 2003 10:18:02 -0600
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Another 'trick' I've used with some success lately is due to Stan =
Weinstein "Profiting in Bull and Bear Markets"*. He suggests setting a =
hard stop a bit below major pyschological levels, like full and 1/2 =
dollars. So if whatever method you use says set a stop at $16.05, he =
suggests using instead $15.95 if you really don't want to stop out but =
feel the need to protect profits at $16.05.
Rolf
* The book is not CANSLIM and is based purely on technical analysis. It =
is an easy and enjoyable read, and does clarify some of the technical =
ideas that WON mentions in HTMMIS. Katherine brought the book to our =
attention last fall I think.
----- Original Message -----=20
From: jmp23834=20
Rolf,
Yes, ATR =3DAverage True Range. I take the average daily range for the =
last 5 days and multiply it by 3 to get my stop. Actually my charting =
software does this automatically so it's not that hard. If I were to use =
the weekly ATR a multiplier of 1 is probably close to the same.
Thanks for your reply.
John P
----- Original Message -----=20
From: Rolf Hertenstein=20
To: canslim@lists.xmission.com=20
Sent: Thursday, June 19, 2003 9:34 AM
Subject: Re: [CANSLIM] Trailing Stops
Does ATR =3D Average Trading Range? If so, I do consider historical =
weekly trading ranges in setting my trailing stops, but I haven't =
quantified it like you mention. For instance, if a stock is at $20, =
then a 15% trailing stop would be $17. But if the stock has a history =
of $4 weekly swings (fun ride!) and I really want to try to hang on to =
it, and the market is good, I'd set a stop somewhere below $16. I've =
only recently been using this method and it seems to help keep me in for =
better gains.
Rolf
----- Original Message -----=20
From: jmp23834=20
Does anyone use a trailing stop based on ATR? I am currently using =
3 times the 5 day ATR and wonder if this is too loose or too tight for =
CANSLIM stocks.
JP
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Another 'trick' I've used with some =
success lately=20
is due to Stan Weinstein "Profiting in Bull and Bear Markets"*. He =
suggests setting a hard stop a bit below major pyschological =
levels, like=20
full and 1/2 dollars. So if whatever method you use says set a =
stop at=20
$16.05, he suggests using instead $15.95 if you really don't want to =
stop out=20
but feel the need to protect profits at $16.05.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2> Rolf</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>* The book is not CANSLIM and is based=20
purely on technical analysis. It is an easy and enjoyable =
read, and=20
does clarify some of the technical ideas that WON mentions in=20
HTMMIS. Katherine brought the book to our =
attention last=20
fall I think.</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Djmp23834@yahoo.com =
href=3D"mailto:jmp23834@yahoo.com">jmp23834</A>=20
</DIV>
<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2></FONT><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Rolf,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Yes, ATR =3DAverage True Range. I =
take the average=20
daily range for the last 5 days and multiply it by 3 to get my stop. =
Actually=20
my charting software does this automatically so it's not that hard. If =
I were=20
to use the weekly ATR a multiplier of 1 is probably close to the=20
same.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thanks for your reply.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>John P</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Drolfh@mindspring.com =
href=3D"mailto:rolfh@mindspring.com">Rolf=20
Hertenstein</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, June 19, 2003 =
9:34=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Trailing=20
Stops</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Does ATR =3D Average Trading =
Range? If so,=20
I do consider historical weekly trading ranges in setting my =
trailing=20
stops, but I haven't quantified it like you mention. For =
instance, if=20
a stock is at $20, then a 15% trailing stop would be $17. =
But if=20
the stock has a history of $4 weekly swings (fun ride!) and I really =
want to=20
try to hang on to it, and the market is good, I'd set a stop =
somewhere below=20
$16. I've only recently been using this method and it seems to =
help=20
keep me in for better gains.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2> Rolf</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Djmp23834@yahoo.com =
href=3D"mailto:jmp23834@yahoo.com">jmp23834</A>=20
</DIV>
<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2></FONT><FONT=20
face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2></FONT><FONT face=3DArial=20
size=3D2></FONT><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Does anyone use a trailing stop =
based on ATR?=20
I am currently using 3 times the 5 day ATR and wonder if this is =
too loose=20
or too tight for CANSLIM stocks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial=20
size=3D2>JP</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></H=
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