Originally developed bu Cynthia Kase (in her book "Trading With the Odds"). This version is calculating the DevStops exactly as described in the book.

Engineering a Better Stop: The Kase DevStops

What all of this boils down to is that we need to take variance and skew into consideration when we are establishing a system for setting stops. Three steps that we can take in order to both better define and to minimize the threshold of uncertainty in setting stops are:

1. Consideration of the variance or the standard deviation of range.
2. Consideration of the skew, or more simply, the amount at which range can spike in the opposite direction of the trend.
3. Reformation of our data to be more consistent (this step is examined in detail in Chapter 81, while minimizing the degree of uncertainty as much as possible).