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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: David R. Evans who wrote (7604)	1/6/1998 3:50:00 PM
From: shasta23	Read Replies (1) \| Respond to of 12039

HI DAVE! You always asked for more question...well here they come! 1)I read some old post again from this thread about exit strategies and noticed that there are many ways of doing it: MA's cross, DNS<3, Stochrsi(14) crossing down 70, SAR crossing over price etc. On the other hand I read that you also use stops(mental!) which you set differently according to the market conditions(bad market 5-6%,good market ~10%). You also emphasized having an exit strategy before you enter a trade so this is an important subject. NOW the question: do you see having stops as an exit strategy and I mean sole exit strategy or is that approach to passive and you want something more "active" like one of the above? I haven't tested it out in MSWIN but do you think you give less % back if you use your stochrsi(14) cross through 70 instead of waiting for a 6-10% pullback? 2)I like your system with the Stochrsi(14) cross 30 maybe you teach it so well. And since i'm a newbie in search of a system I use it for now(but i'm not trading and just do paper trades, lost too much between sept-dec 97 on unplanned trades!!grrrr). I noticed that some strong stocks don't drop in STOCHRSI(14) under 30 but hook up above that level maybe in the 40 range. Your scan would miss these stocks. Is this OK since one has to decide for a system and all of the systems have drawbacks or do you run other scans to integrate these? 3)How do you system test a complicated and sometimes still very subjective decision process like the one described in the IBM post? I looked at lot's of stocks that came out of the pure stochrsi(14) scan but I would choose only a few. So how do you test that? Yes testing the stochrsi component of the decision process is easy or the DNS part but how test the whole system? I have lot's of questions on my mind but they have to ripen to bring `em to paper. Thanks for all the great post and thanks in advance for every idea/answer you have. Stefan P.S. Great to hear about THE BOOK...hope you will still have time to post some "material" here for us.