The TLT model does have an exit mechanism if a position goes parabolic. That code looks like this:
MovePercent = Param(“Move %”,25,5,100,1);
MoveLook = Param(“Move Lookback”,100,1,250,1);
PF1 = C;
PF2 = Ref(C,-1);
M1 = ((PF1-PF2)/PF2)*100 > MovePercent;
MoveNum = Sum(M1,MoveLook);
MoveFilt = MoveNum == 0;
It will do two things;
(1) Not allow a position to be entered if the stock moves 25% in a single day in the last 100-days, or
(2) Exits a position if the stock moves 25% in a single day (close to close)
Another way to do it is to measure the move in total over the last n-days.
ParabolicPercent = Param(“Parabolic %”, 300, 100, 500, 1);
ParabolicLook = Param(“Parabolic Lookback”, 100, 1, 250, 1);
Parabolic = ROC(C, ParabolicLook) > ParabolicPercent;
In this case, the stock will be exited if it rises move than 300% in the last 100 days. Use AND NOT in the conditions.
