Unclear, why are all the futures masters" Tradestation in their 'famous" trading systems use dollar stops? For example, suppose, for the futures on the SP500 index, the system decided to set a protective stop $800. And this stop is unchanged throughout the entire backtesting period over the past years. 20. Let's admit, the system turned out to be quite good and therefore in the coming years they will also continue to trade it with the same dollar stop.
But SP500 futures, however, like other futures during this time, they have been at completely different price levels, doubling and even tripling in value. For example, the SP500 futures cost and $670, And $2100. The difference is two and a half times. And stop $800 for the minimum price and maximum, in principle, it is not at all equivalent. If for a futures cost $670 stop $800 relatively remote, then for a futures cost $2100 he is already within close reach and the probability of triggering a stop is twice as large.
There may be some hidden meaning in dollar stops, which I cannot understand? Or is it due to the illiteracy of system developers, ведь они, mostly, from America, but there they don't really like interest, as i noticed. Well, if they are so afraid of interest, what to say about feet, calculated from the current volatility, for example using ATR. This moment is not clear, honestly.
