[pcabc]

It simply means where to set the stop loss, and is explained in detail in his book.

Thanks. I'm waiting on the book to be delivered. That will probably explain more than a few things as I read through this forum.

Certainly will. To me the market direction is currently unclear. I'm not trying to discourage you, but I have some open long (shares & funds) and short (etf) positions and am making no real progress. Therefore reading the book and not doing anything else until there is some clear direction might be the best plan.