Replies to post #511 on Trade Ideas: Support Forum

[Trade Ideas]

To understand what we mean by "bars" take a look at this video.

http://www.trade-ideas.com/VideoHelp/Menu.html?video=Introduction%20to%20Volatility
(it's very good)

The nutshell is this: Bars refer to our measurement of how much volatility a stock has on average every 15 minutes. If a stock moves $1.00 on average every 15 minutes, it has a bar value of $1.00. This number is specific for every stock. For this reason it's not possible to say, a stop loss of $0.50 because that amount is relatively different for a low-priced stock vs. a high priced stock when looking at all the stocks that might be produced from a particular strategy.

If you ask for a stop loss of 2 bars, you are asking us to exit the position if the volatility is twice its average bar.

Having a video is a good suggestion - we are working on one now. Thanks again