Aug
29
InVivo Universal Stops are engineered to reflect actual volatility and range, providing users with a real edge over other so-called volatility-based indicators or bands.
Used alone, InVivo Universal Stops is known as a stop and reverse system, that is, it is always in the market long or short. In practice, traders qualify trades by imposing additional conditions such as a time filter, trend filter, a moving average filter, etc. In addition, they must also decide on the amount of leverage to use and calculate the position size based on the foregoing.
Use InVivo Universal Stops according to the following two rules:
- BUY RULE: A *close* above a blue dot is buy signal.
- SELL RULE: A *close* below a pink dot is a sell signal.
While the math behind InVivo Universal Stops is complex, using this indicator is easy as 1-2-3. InVivo Universal Stops shows you the exactly where your stop should be at all times. The stops can also be used to buy and sell options, particularly our “Plan B” bull call or bear put spreads.
Indicator Inputs for _InVivo.Stops for TradeStation
The “tightness” of the stops is based on the StopFactor setting. The default is set to UniversalStop = True. The indicator dynamically selects an appropriate StopFactor setting between 1.0 and 1.5. You can also manually select a StopFactor.
If you wish to set the StopFactor yourself to accommodate your style of trading, use the Inputs tab to enter UniversalStop = false along with the desired setting for the StopFactor. Investigate a range of settings between 1 and 1.5 at 0.1 increments. StopFactor settings under 1 are insufficient while settings larger than 1.5 are unnecessary.
In trend (directional) trading, it is perhaps not possible to tighten the initial stop or trailing stop beyond what volatility dictates. Time and again, we have seen that a wide range of trading “problems” tend to be resolved by trading high-priced, high-volatility issues in larger time frames while simultaneously reducing trade size/leverage with the use of reasonable stops.
DEFAULT: PctToStopAlert = 1.01
The alert is set to ring when price is within 1.01% of the stop. Use the Alerts tab to set your own preferences.
TrendFilter should always be set to zero. No adjustment is necessary.
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