Message:
I would be interested - and I suspect others would be as well - in your
definition of tight stops. Are they based on a % of the intraday high within
a signal, or the signal buy price, Additionally are they based on the closing
price for a day, or a stop within the day.
Response:
The model uses 5
percent trailing stops based on the closing price. I sometimes will say to
tighten stops. I don't have a precise definition of this but I normally will
go to 4 percent. The percentage you use will depend on your risk tolerance.