Trailing Stops

[JayF]

As this discussion is moving toward a discussion of trading strategies, I've moved this thread to the appropriate forum.

[Charthound]

The thing I like about this trailer is that it hugs the price bars on a strong up-move, then squeezes up ever so slightly on every bar when the market is range-bound. According to the paper, it uses the mean of the data to do that. But there is no short side. Does anybody have a way to make a short-side trailer, using this logic?

[countertrender]

Charhound raises a good question. The theory for the trailer was developed using the Dow. The Dow is mean-positive. To create a Short trailer, it's necessary to do something different with the mean of the data. I'd like to see some ideas on this.