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Strategies & Market Trends : Ask DrBob
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To: xu, b. who wrote (38425)7/1/2001 8:14:18 PM
From: xu, b.   of 100058
 
I should emphasize here that the calculation of standard deviation is based on the assumption that the short-term price fluctuation follows the Normal distribution. As I explained in my previous posts, the price shock happens more often than thought. But if the price shock is in one's favour, one just needs to kick in trailing stops.
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