Trading-systems researcher who created the Chandelier Exit
Chuck LeBeau
Chuck (Charles) LeBeau is an American trading-systems researcher known for his work on exit strategies. He spent about twenty years at E.F. Hutton, latterly as a vice president and regional futures director, later ran a commodity trading advisor and hedge fund, and co-wrote Technical Traders Guide to Computer Analysis of the Futures Markets with David W. Lucas. His Chandelier Exit was popularised by Alexander Elder's 2002 book Come Into My Trading Room.
What they argue
- Exits are among the most important parts of a trading system - often more important to results than entries.
- A trailing stop hung a multiple of Average True Range below the highest high lets a trend run while adapting to volatility.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- Technical Traders Guide to Computer Analysis of the Futures Markets (with David W. Lucas) (1992)
Chandelier exit trend ride
Rule and full recordBreakouts & channels · daily
LeBeau's stop hangs three average true ranges below the highest high, like a chandelier from the ceiling. Paired here with a 22-day breakout entry.
Best risk-adjusted results against buy and hold: