Using today's opening price for SDS of 102.33 the trade made an 11.2% gain up form 92.04 entry price at the open on Oct 15. I have learned from past experience that the model serves me better when if I just wait for the signals and do not set a stop loss that would prematurely exit the trade.
In real life, someone should be advised to use a stop loss, but if you are trading this system with a smaller portion of your capital, I think it is best to not use a stop loss. I filter what signals to act on by going in the direction of the prevailing trend, and then also using candlestick patterns and market sentiment to act on occasional reversal points.
Also, the opening price for SSO was 28.37 and that is the price I will use to track this trade. For someone in the trade I would suggest a stop loss of 26.20 if you like to have a defined risk for money management purposes.
Pete
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