PrettyGoodIndicator by Clefsphere

9/12/2018 Amazon current stop is at 1487.

PrettyGoodIndicator. A strategy which seeks a favorable entry point and then holds through normal volatility to let profits run. Green background is when the signal is bullish. Script is written to show back-test results. Dates of back-test period can be adjusted. Strategy is for Long trades only.

Features:

* Features a Moving Stop which is based on volatility. A multiplier is used and can be adjusted for more or less volatility. Of course the dilemma of stops is that adjusting to tighter stop may result in more stop outs, less profits. Whereas, looser stop may result in larger losses, larger profits. This Moving Stop usually adjusts Up but possibly might move Down depending on a new signal(s) after the original signal. This flexible moving stop usually gives the stock extra room to fluctuate because of the signal triggering again within the trade.

* When subsequent signal triggers occur during trade, Moving Stop will adjust accordingly, possibly downward, to allow for the new signal.

* When each profit target is reached, profit target (in green) moves up and Moving Stop (orange) moves Up.

* A Hard Stop (red line) is also used as a fail safe. It moves to break-even when certain profitably is reached. Once Hard Stop moves to break-even it will not move down.

* The gray volatility bands that plot between trades are where Hard stop and profit target will be set when signal happens. This indicator allows for large drawdowns even though it uses stops, so allocate more or less funds according to the loss that would occur if lower volatility bands/stop reached.

* Review the back-test results in the chart and let me know if you want to check it out for a trial run.

Coded with latest PineScript version 3. For more information and to request for use, go to: marketcast.wordpress.com
Thanks for your interest and support!

Disclaimer: This information is not trading advice and is for educational purposes only. Trade at your own risk. Past performance is not a guarantee of future results.