TSL is not good in volatile market, hence I suggested to first wait for the price to go above the Historical Win Average and then start trailing from a lower time frame. Eg: A strategy has an Average profit value of 20points and average loss of 10points, then in volatile period as soon as the profit goes above 20, start trailing it closely. Also if price not moving in the expected direction and below our buy price, then cut the TSL in half to 5 points and start trailing closly. In volatile markets our win-loss ratio will be low, hence we need to reduce our risk and try to protect profits proactively.
Also I would not recommend Target based trading unless one is scalping or HFT. For example if we work on say 1:2 RR ratio, then there is higher probablity of negative expectancy in a volatile environment. Over n number of trades the average profit value for a 1:2R strategy with 50% win probablity will be less than 1R, and during volatile periods the win probability will be much smaller. Hence over time the more we trade it higher chance that our account will go into negative.
Hence the best way I have observed is to keep the profit target open by using our historical profit avaerage to decide on the optimum Stop loss trailing point but to keep a fixed loss target which is lower than our historical loss average.
here trade avg means - net profit ??
