Introduction

In our Forex lectures, we defined DAATS (15 × ATR(200) on M60) and derived a portfolio “one-sigma” noise unit (GNASD) to anchor micro-timeframe stops, breakeven triggers, and trailing rules. Now we apply these principles to the Global Equity Momentum Fund (GEMF) – USA Sub‐Fund, running on an M60 timeframe. Below are the raw M60 DAATS values (in cents) for each stock:

1. Law 1 & Law 3: ATR and DAATS for Each Stock

2. Law 4 & Law 5: Breakeven and GNASD for the Stock Portfolio

Breakeven Distance (per stock) = 3.14% × DAATS($). Example:

• AAPL: \$44.06 × 0.0314 ≈ \$1.38
• TSLA: \$94.69 × 0.0314 ≈ \$2.97
• NFLX: \$218.62 × 0.0314 ≈ \$6.86

GNASD (one-sigma noise unit) for all 28 DAATS(¢):

1. σₚₒₚ(DAATS) ≈ 4 417.57 ¢ (≈ \$44.18)
2. GNASD = 4 417.57 ¢ ÷ 28 ≈ 157.77 ¢ (≈ \$1.58)

Therefore: BE% = 3.14% and GNASD = \$1.58.

3. Law 6: Position Sizing (with \$100 000 Equity)

Risk per trade = 0.5% of \$100 000 = \$500. Position size (shares) = \$500 ÷ DAATS($). Example:

Round to the nearest whole share according to your broker’s rules.

4. Law 7: Summary & Noise Floor Rules for GEMF Equities

• Breakeven Trigger (per stock): Once price moves in your favor by 3.14% of that stock’s DAATS($), shift stop to entry.
  Example: TSLA’s DAATS = \$94.69 → BE distance ≈ \$2.97.
• Post-BE Trailing: After breakeven, trail by \$1.58 (GNASD).
  Example: If AAPL’s new high = \$150.00, trailing stop = \$150.00 − \$1.58 = \$148.42.
• Optional M60 DAATS Floor: Enforce stop never tighter than full DAATS($): Stop ≥ EntryPrice − DAATS($) for longs (mirror for shorts).
  Example: PG’s DAATS = \$20.17 → you may choose to never trail inside \$20.17 to survive hourly noise.

Implementation Workflow (M30/M15/M5/M1)

1. Check Higher-Timeframe Filters:
   • Daily MACD(8,17,5) must be bullish for longs (bearish for shorts).
   • M60 EMA 50/EMA 89 regime must match Daily bias.
   • If either fails, do not enter.
2. Signal on Execution TF:
   • Use micro-TF MACD(8,17,5) cross, zone-rejection, or candle pattern per trade grade (AAA/AA/A).
3. Compute M60 DAATS & Breakeven: DAATS = 15 × ATR200 @ M60 (in $) BE$_ = 0.0314 × DAATS
4. Place Initial Stop:
   • Long: Stop₀ = EntryPrice − DAATS
   • Short: Stop₀ = EntryPrice + DAATS
5. On Each New Bar/Tick:
   1. If Profit ≥ BE$_, shift stop to entry (breakeven).
   2. After breakeven:
      • Track HighSinceBE (long) or LowSinceBE (short).
      • TrailStop = HighSinceBE − 1.58 (long)
        or LowSinceBE + 1.58 (short).
   3. (Optional) Enforce Stop ≥ Entry ± DAATS (floor).
6. Exit:
   • Long: if CurrentPrice ≤ Stop
   • Short: if CurrentPrice ≥ Stop
   • Then close trade.

5. Portfolio-Level Metrics

Mean DAATS: 5 030.71 ¢ (≈ \$50.31)
σₚₒₚ: 4 417.57 ¢ (≈ \$44.18)
GNASD: 157.77 ¢ (≈ \$1.58)
Breakeven %: 3.14 %

Use \$1.58 as the fixed trailing-stop buffer and 3.14 % of each stock’s DAATS as the breakeven trigger.

About the Author

Dr. Glen Brown
Founder, President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. With 25+ years of proprietary trading and quantitative research, Dr. Brown developed the Seven-Law Volatility Stop-Loss framework and the GATS platform. All research and code remain in-house; our revenue is generated exclusively from trading performance.

Business Model

Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. operate a closed, research-and-trade model. We do not license or lease software, nor accept external capital. All intellectual property—GATS algorithms, volatility rules, automation scripts—remains proprietary. Trading profits alone fund operations, ensuring absolute alignment between research and performance.

Risk Disclaimer

This content is for educational purposes only and does not constitute investment advice. Trading equities involves significant risk of loss. Past performance does not guarantee future results. Consult a qualified advisor before making any trading decisions, and only trade with capital you can afford to lose.