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 eSignal 10.x
Assuming that eSignal Advanced Charting is installed on your C: drive and you saved the EFS file to My Computer > C: > Program Files > eSignal > Formulas > Advanced > PowerTools folder, apply InVivo.Stops as you would any other indicator and click Chart Options > Edit Studies to adjust the settings, including Alerts.
Apply the indicator by
- left clicking on the background of a chart to activate it,
- right clicking on a blank part of the chart to bring up the menu,
- scrolling down the menu, select Add-On Studies > PowerTools > InVivo.Stops.efs
OR find CHART OPTIONS on the menu along the top and select Add-On Studies > PowerTools > InVivo.Stops.efs. This will apply the indicator to whatever chart is active.
NOTE: If your file does not feature alerts, let us know — you are using an older version!
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.
ALERTS
Alerts are set to go off on the first tick of the first bar after a signal change.
Questions and Comments
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