For operning position, use Random Walk Indexes (5)
Stop loss: maybe Supertrend is ok
and for stop profit???
Put a stop to it, but using some differences
** Formula
1) Define the 2 components (indicators) of RWI to use
a) RWImaxSP=(high-low[s])/(AverageTrueRange[s](close)*square(s))
return RWimaxSp
b) RWIminSP=(high[s]-low)/(AverageTruerange[s](close)*square(s))
RETURN rwiminSp
http://saucius-finance.blogspot.it/2010/01/pro-real-time-functions.html
///****Version with RWI as “tester”***
// NICE DEVICE FOR SWING TRADING!! AND FOR tHROWBACK
myVIp = CALL RWIMaxSp[k]
myVIm = CALL RWIMinSp[k]
if myVip >= myVim then
stop1 = customclose + AverageTrueRange[n](customclose)
else
stop1 = customclose – AverageTrueRange[n](customclose)
endif
if myVIp >= myVIm then
stop2 = highest[m]
else
stop2 = lowest[m]
endif
return stop1 as “Stop_ATR”, stop2 as “Stop_hi_lw.est”
//default k = 5, n = 14, m = 11.
// very important: USE IN THIS CASE THE narrowest TARGET, not the farthest
// in the 1st day of cross of Rwi+ and Rwi-, not the 2nd