Missing Catalyst - December 14, 2011

[roberto.giusto]

Excellent idea! Now, how do you detect choppiness with confidence?
We have tested selling on targets and it consistently deteriorates long term cumulative performance.
Billy

Billy,

I was thinking to the very interesting example you showed us a few days ago, using 3 different (with 2 tighter) trailing stops for your triple leveraged position.

That could be a way to limit the loss, or even to have a little profit even if the official robot trade incurs into a loss.

The reverse of the coin is that long term cumulative performance still risks being deteriorated if compared to a "full" position.

[Billy]

Billy,

I was thinking to the very interesting example you showed us a few days ago, using 3 different (with 2 tighter) trailing stops for your triple leveraged position.

That could be a way to limit the loss, or even to have a little profit even if the official robot trade incurs into a loss.

The reverse of the coin is that long term cumulative performance still risks being deteriorated if compared to a "full" position.

Roberto,
That’s exactly what I described in my post below as a discretionary “choppiness” risk management strategy. My mistake was to switch to an aggressive discretionary “trend-following” strategy mostly based on too small a statistical sample from stage analysis. But I clearly mentioned to all at the time that it was not robot-related.
Billy