Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.
Hi Adam – any chance you could give some more flavour on the criteria used for your algorithmic stop example?
One area where I struggle is balancing placing a wide enough stop while also being able to hit 1R. A trailing stop like this seems to be a sort of hybrid approach?
On that note, I appreciated your previous blog post on managing exits… it’s definitely an area I am working on right now and my challenge is finding consistency. A trailing stop might be a good solution for me – certainly has it’s own downsides, but it would bring the critical consistency to my exits.
Wow great stuff. This is exactly what I am going through at the moment. The trade off between my discretionary stop placement and the possibility of using a volatility based stop placement methodology. I am finding it so hard to be consistent. My email is [email protected] let’s chat!