I've noticed in trend-following strategies that use stop losses that it can be quite easy to get stopped out of a position due to a max trade loss, but not get a new buy signal for weeks or months. If the investment vehicle merely had a quick dip of say -4%, you get stopped out but the symbol quickly reverses upward for a big move, you could miss the whole thing. Moving averages and any other trend-following signal could easily fall into this trap.
So, for example, what would be a simple way to make sure that once you're stopped out, you can get back in to a major move WITHOUT waiting for a new buy signal from the CROSS? ex: Buy = Cross(MA( Close,7 ),MA( Close,42 )); Sell = Cross(MA( Close,42 ),MA( Close,7 )); Thanks! Steve.
