Robots Outlook for June 17, 2011

[Billj]

Billy; When we add to a position or get in late on a Strong Buy signal, like IWM has now, is there a formula or methodology you can provide us to manage the trailing stop after the first day or should we just move the stop to the "Management of an existing position" stop level?
Thanks for all your hard work. It REALLY is appreciated,
Bill

[Billy]

Billy; When we add to a position or get in late on a Strong Buy signal, like IWM has now, is there a formula or methodology you can provide us to manage the trailing stop after the first day or should we just move the stop to the "Management of an existing position" stop level?
Thanks for all your hard work. It REALLY is appreciated,
Bill

Bill,

Ideally you should enter at the limit price i.e. 77.77 on Monday and start with the new position's initial stop (75.99) or 2.29% away.
Trailing the stop thereafter is depending on your own trailing techniques. Since the stop is a function of ATR, a good guideline and suggestion would be to keep the same % difference of 2.29% from any close above your entry, never lowering the stop. If you can enter at 77.77 on Monday and the close is 78.25, you raise your stop to 76.45 and so on on the following days.
Your trailing stop will progressively catch up with or even overshoot the robot's existing position's trailing stop, at which point you may start trailing with the exact same stop as the robot.
Billy