Remember those >94, <10, <6 signs?
They can be utilized for a perfect exit.
With the addition of code 94 – which means 0.94 stop loss on a long and 9.4 stop loss on a short now it is possible to have a near perfect exit.
Until now targets could be set dynamically to a moving average or a displacement of a moving average (overdrive lines).
With the new cropper routine you can be sleeping in the middle of the night or be roaming somewhere out of coverage whilst the home computer is taking care of the optimal exit business.
What you need to remember is a good exit isn’t always the best entry for a reversal. When things get overheated, stochastics can embed for a while and at times only the second >94 or <10 would bring about an optimal entry.
Now these lines are part of TrailStopOnlyModifiedLT, which clearly isn’t a Trail Stop Only, but rather a Swiss Army Knife.
I find myself switching off among the various SL codes based on my latest analysis. I may open a trade manually and give it an Overdrive line target (code 8) then upon realising that a continuation against me is a bigger likelihood now, I would change the “stop loss” code to E16 or E32 (code 5 or code 6).
Having optimised automatic entry is a power just as much as having a 1/2 and full automatic hedge for a black swan event to prevent the account from being blown and possibly capturing it at a workable condition still.
Other – I ended up having to highlight the oversold end of the last consolidation as well, if the 4H RSI2 is below 14 when reaching a full charge, the selling already embedded:
I do expect the consolidation mean (fair price) to be attacked again, and if crossed, the other end becomes in plans.