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Strategies & Market Trends : The Darvas Box Thread - Using the Nicholas Darvas system
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To: booters who wrote (457)11/28/2002 12:18:11 PM
From: MechanicalMethod   of 498
 
I'm looking for ideas to reduce the number of times a strategy gets chopped and the dollar value of individual chops. Here's a little insight into what I have so far.

If stopped out of a breakout to the upside within n bars of entry or at a loss then set the next entry on the longside to include 1 more choice in the list maxList(value1, value2, value3); where normally it would take another upside breakout at maxList(value1, value2);

If a trade to the upside is closed out with a profit then the entry stop for long trades returns to the normal stop rather than the wider entry stop used during chop.

That's helps reduce the number of times I'm chopped and the algorithm applies to downside breakouts separately. Thus it needs a false downside breakout to widen the downside entry stop and a successful downside breakout to return it to the normal downside entry stop.

To decrease the dollar value of each individual chop I'm sticking with the original stop as the exit. Thus there's a flat period between the exit and entry in the opposite direction during chop. I'm also thinking of tightening that exit stop that goes flat during chop to tighter than the norm or moving to breakeven as soon as some as of yet unknown condition indicates it's prudent.

Don't ask! Just build on it if you can.

TIA, best regards and Happy Thanksgiving!

MM
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