Hi Blitz,
The system is under live testing. There will be some issues to solve. Presently the SL is previous low. The target is equal to the high plus the difference between high and SL. This means the high is exactly between SL and target. As the CMP on trigger day is closer to high of the day it appears as the difference between CMP and SL is almost same as the difference between CMP and target.
It is true that SL should be closer to CMP, but it is more appropriate in intra-day trading. For the shares bought and held for several days the SL will be much lower. The reason for chosing the previous low as SL is that, the share would have bounced back from that level before giving the BUY signal. Therefore, it would be a support point. If the share is on the up move it will either not go back to that level or will find support at that level. Generally, during an up move there will be higher lows made and therefore the previous low is a safer SL. The SL given along with the triggers is initial SL. The SL will be moved up appropriately after some time (Trailing Stop Loss). Therefore, in the Follow up tables you will find both the SLs mentioned which gives an idea how far we have moved up the SL. In due course of time during the testing appropriate strategies would be worked out.
As the system is under testing I am always putting a warning note not to trade the signals. But any one who is confident of taking the risk and capable of damage control actions in case of the share moving in reverse, can trade these signals at own risk.
Regards
-Anant
