Quote Originally Posted by mklein9 View Post
I would say that stops and buys should always be conditional on IWM if the goal is to follow the robot as closely as possible, whether the vehicle being used is a leveraged and/or inverse ETF or futures, etc.


Also there is an issue today in that IWM went ex-dividend with a -0.36 drop (as Billy pointed out). That means that the 74.80 stop would have triggered today if it had not been exactly the same day as ex-dividend occurred. However, the IWM robot's stop was not adjusted for the dividend. Is that the intent, or was this an oversight? I would not imagine that back testing has a case exactly like this, and we end up in the position longer than testing would have indicated.

-Mike
The stop on IWM was intentionally not adjusted. I don’t know if backtesting has a case exactly like today, but if you start adjusting stops for dividends, you need to adjust everything, from pivots to ATR. In our tests, it really never made any difference for performance, so we opted for simplicity.
The issue is with leveraged and inverse ETFS which are not robot trades but discretionary trades.
Billy