There are following major rules of active investment – fix looses and let the profit grow. You can’t let huge amount of looses happened in case market will start to act in spite of our forecasts and you can’t jump off a good trend earlier then its top.
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Pic. Position closure
PortfolioRunner position closure (stop) rule uses piecewise-linear approximation of cost curve and called wave stop. Let’s say the distance between the last determinative points of local minimum & maximum is 100%. Landslide of price from the last determinative maximum point down to Fibonacci levels: .gif)
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predetermines new opposite trend and sets the signal for position closure. PortfolioRunner strategies have protective stop that register looses at the 2nd level of Fibonacci’ correction (as here we see the maximum probability of trend’ direction change (
at the picture). Use of wave stop corresponds to the rule of losses commitment, though still leaves a space for profitability growth.
& predetermines new opposite trend and sets the signal for position closure. PortfolioRunner strategies have protective stop that register looses at the 2nd level of Fibonacci’ correction (as here we see the maximum probability of trend’ direction change (at the picture). Use of wave stop corresponds to the rule of losses commitment, though still leaves a space for profitability growth.
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