Kase DevStops: Setting Trend Stops with Range and Deviation
Summary
The document explains the Kase DevStops indicator as a way to place trend-following stops while accounting for variation and asymmetry in price ranges. It uses a short and a longer moving average to determine trend direction, tracks an extreme price as the trend develops, and estimates recent range using highs, lows, and a lagged close. The average range is adjusted by several multiples of its standard deviation to produce multiple candidate stop levels.
The rationale is that stop placement should reflect both ordinary range variation and the possibility of sharp movement against the trend; the source also mentions making the data more consistent. The included indicator implementation provides sample settings, but the document supplies no backtest or evidence comparing its stops with alternatives. It does not define position sizing or a complete entry and exit system, and performance may depend on instrument, timeframe, data handling, and parameter choices.
Key ideas
- The indicator uses moving averages to identify the prevailing trend direction.
- It anchors stop levels to a running price extreme and recent range statistics.
- Several stop distances are formed by adding standard deviation multiples to average range.
- The approach aims to account for range variability and adverse spikes, but no performance comparison is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.