Kase DevStops: Accounting for Range Variance and Skew in Stop Placement

Summary

The document introduces Kase DevStops as a stop-setting approach that considers properties of price range beyond a simple fixed threshold. It highlights variation in range, described through variance or standard deviation, and skew, described as the extent to which range can spike against the prevailing trend. It also proposes making the input data more consistent to reduce uncertainty when defining stops. The approach is attributed to Cynthia Kase and presented as a version intended to follow the method described in her book.

The material is conceptual and brief. It does not provide the calculation procedure, parameter choices, example charts, instrument or timeframe guidance, or empirical comparisons with other stop methods. It points to a separate chapter for the data-reformation discussion, so that part is not explained here. The document motivates accounting for volatility distribution and adverse excursions, but offers no results establishing the method’s effectiveness or suitability for a particular trading system.

Key ideas

• Stop placement should account for variation in price range, not only its average level.
• Range skew captures the possibility of sharp moves against the trend.
• More consistent input data is presented as a way to reduce uncertainty.
• The document attributes the method to Cynthia Kase and her published work.
• No formulas, parameter guidance, or performance evidence are included.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.