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The GTFO indicator

I recently posted about how the GTFO indicator works that may have been confusing to some. I've been using the GTFO indicator long before combining a StaleStop exit into the mix. The StaleStop exit came about because some positions were being held too long when momentum had slowed realising those funds could be deployed elsewhere. The GTFO is my get-out-of-Jail card & after re-reading my previous posts may have given some the wrong idea of its functionality.

It's a crude measure

The ROC filter of the GTFO indicator is tuned (optimised) to the XAO Index Filter "off period". The GTFO indicator is only deployed against individual positions. A mass exit of all positions is rare but the GTFO often kicks me out of individual positions over time.

When do I sell?

You first have to consider all your holdings as individual trades not as one portfolio because that’s what they are. Your portfolio is a collection of individual trades & every stock presents its own individual trading challenge, its own separate battle to fight. No trader is smart enough to make one decision that will be successful in exiting every position at the same time but the GTFO indicator has displayed that it has this ability twice now. It's important to remember that selling positions should be done on their own merits, the GTFO indicator activates a mass exit only when trading across the board goes pear shape.

When do you get out of the markets completely?

Half the reason traders have trouble getting out of the markets "in one go" is because it’s close to impossible in making a "grand deliberation" when the market are in free fall. Occasional those few "up days" when the market are in free fall only adds confusion to the mix. My GTFO is a rough & crude measure but somehow seems to work well for me - the StaleStop combined with the GTFO indicator works hand-in-glove complimenting each other. The GTFO/StaleStop indicator combined into my looping variable trailing stop certainly adds value to my strategies.

Skate.