Reply to thread

All good...taken as a constructive observation. Although I am a little confused as to understand what your suggesting so forgive me if I'm misinterpreting you. But here goes. I'm not the sharpest tool in the shed so maybe if you can give me a simpler actual example I can better tell you how my emergency exit will respond to that scenario.

Are you suggesting that on Friday night I check each and every daily bar for that week; that is, separately check each of the five daily bars for Monday to Friday and if any of those bars has a 4.5% drop then trigger my emergency exit? If this is what you're suggesting then I think it would be prone to false triggers. For instance, assume Wednesday of a given week had a 4.5% drop but then had a strong rebound on the Thursday and Friday to recover Wednesday drop and put on gains--that to me would incorrectly sell of my entire portfolio despite the market finishing the weekly strongly. Like I say, maybe I am misunderstanding your suggestion.

My code (and my emergency exit) is not dependent on when the crash started during the week--it can start Mon, Tue, Wed, Thu or Friday. So long as any single week closes 4.5% (and I should say a week is Mon to Friday) down from open then it will trigger. Sure a decline in the market might be slower and spread over many weeks and in that situation my emergency exit will not be triggered because the 4.5% decline occurs over many weeks with each week seeing only a 1% or so decline. I'd mentioned this in one of my earlier posts, my emergency exit will only capture a "flash crash" scenario...it will not catch slower sell offs.  

I am keen to better understand the scenario you're talking about as I'd like to make sure my emergency exit is solid. Thanks for the input.