Why was DIS trailing stop so tight?
The unfiltered breakout for DIS occurred back on the 12th of January. The close price of DIS was 99.81 and the ATR TS set itself at just over 88.5… ~11% beneath the price data.
Due to the addition of the Stock Filter to the SPA3 Investor system, the buy signal did not occur on the default scan and mobile app until the 9th of February. By that time the price of DIS was 110.36 and the ATR TS had crept up to about 106.5… ~3% beneath the price data.
We understand that it did not leave much room for DIS to fall, but it is a long term trading system and these instances will occur; conversely, there are plenty of examples in which a BAP or a filtered buy have occurred being right on the doorstep of a sell signal and have prospered.
For more information on the Filter changes:
Here’s our live meetup discussing the initial changes: Part 3: Drawdown Research Project - C&G Meetup 2022 on Vimeo
See the first two archived webinar our follow-up webinars discussing the changes: https://education.sharewealthsystems.com/products/member-education/categories/2151181033/posts/2161208742