Question 67—Trading with the SafeZone

Which of the following statements about SafeZone stops is incorrect?
1. SafeZone is a mechanical trading system.
2. You have to establish the lookback period for the SafeZone.
3. You need to choose the coefficient by which to multiply the normal noise to obtain the SafeZone stop.
4. Usually, a coefficient between two and three provides a margin of safety.

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