Avoid being whipsawed on the entry candle.

[koganam]

Remember how sometimes you write a strategy, especially an always-in-market (i.e., stop and reverse) strategy, and then when you backtest or try to optimize it, you end up with a whole bunch of trades that entered and exited on the same bar, at the same price, at the same time, chewing up commission costs to no purpose, and messing up your results?

I just posted an example strategy that shows how to ensure that an entry in the market stays in for at least one bar before it can trigger a stoploss. I used the SampleMACrossOver as the basis for the strategy as I wanted to post a working strategy rather than just a shell.

I must state that I do not have much faith in the MovingAverageCrossOver as a trading strategy, so even though when optimized, (as in the picture that accompanies the strategy), it shows a profit, remember that backtesting is different from live trading. That means one needs to think very carefully before turning such a strategy live on a real account. I used it ONLY as a working example, not a strategy to actually trade with.

To use it as a template, you should replace the code remarked with: "... //B...ish trade conditions; replace with your own" with code that describes your set of conditions for entering the market.

http://www.ninjatrader-support2.com/vb/local_links.php?action=jump&catid=2&id=253

[NinjaTrader_JoshP]

koganam,

Thanks for sharing your insights.

[MicroTrends]

stops loss whipsaw

Hi

I think that can be a good idea - i too see a stops out like - with small stops -- putting a stop on later is ok providing you have a catastophic loss in place at the same time- then perhaps move it in.
Imagine a scenario where the trade is placed - then all comms go to your broker and then a gardener cuts through your phone line and you drop your mobile on the floor - the stop neve gets placed. You forgot the FOMC were anouncing a rate cut and oh dear - now you wish you had a stop on....

I remember a fine day when i was 100pts up on a trade with several lots with the Z - ended up in a loss less than a minute later... everytime i tried to sell the market had moved and i was requoted.. crazy -

I'm glad to say that NinjaTrader order management will never allow that requote.. that was many years ago in a different time...at market is at market - a stoploss is a stop loss. All trades can be subject to slippage on any platform even one costing £100,000,000s stops should be placed with the trade as part of the same order ticket for safety...