I generally use an ATR measure. For example if the market breaks the lower part of the support zone and goes down more than 0.5 or 1x the latest ATR value, then to me that is more than just noise, and it's better to close out. But, sometimes, when I see a strong technical signal, I will tolerate more noise. In the case of Tnote 10, i used 0.5 ATR which we broke (we went below 110 - 0.36 = 109.64). If I used 1x ATR, we'd still be in. It's just discretionary sometimes, because I lose conviction, otherwise, it's better to be disciplined and only use one ATR measure across markets.
It seems that hogs futures are bearish, not bullish as stated above
Thank you Jose, corrected the typo. I'm glad you read through the report and detected the error.
Happy to help. BTW, why do you choose to close for a loss the 10 Year's treasury bonds?
I generally use an ATR measure. For example if the market breaks the lower part of the support zone and goes down more than 0.5 or 1x the latest ATR value, then to me that is more than just noise, and it's better to close out. But, sometimes, when I see a strong technical signal, I will tolerate more noise. In the case of Tnote 10, i used 0.5 ATR which we broke (we went below 110 - 0.36 = 109.64). If I used 1x ATR, we'd still be in. It's just discretionary sometimes, because I lose conviction, otherwise, it's better to be disciplined and only use one ATR measure across markets.