The Chandelier Stop is a trailing stop that is based on the volatility of the market. It has been successfully used and recommended by a number of traders, including Chuck LeBeau, for trend-following systems. The equations for the Chandelier Stop (CS) indicator recently incorporated into the FT Program are as follows:
If Long: CS=HH-Factor*EMA(Range, Length)
If Short: CS=LL+Factor*EMA(Range,Length)
Here, HH denotes the highest High since the indicator flipped from Short to Long, LL is the lowest Low since the indicator flipped from Long to Short, and EMA represents an exponential moving average. Values of Factor and Length are input by the user, with the default values set to 3 and 20, respectively. When used for long-term, trend-following systems, the best values for Factor in most markets range from 2.5 to 4.0, while the Length is usually set in the range from 10 to 20. You should conduct parametric studies on Factor and Length to find the best values of these parameters for the particular market or issue you are trading.
* Trading any market carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite.
* The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisor if you have any doubts.
* The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.
* You should be aware of all the risks associated with foreign exchange, futures, stocks, options, Cryptocurrencies trading, and seek advice from an independent financial advisor if you have any doubts. We do not offer any advise and trade using our software is at your own risk.
Copyright © 1996-2019
Fibonacci Trader Corp.
All names mentioned in this document are trademarks or registered trademarks of their respective owners.