hi friends
Thanks to kelvinhand to provide the link for trailing stoploss.
As for me, the best type of trailing stoploss is given by Jimberg in his truth about volatility.The trailing stop given there is ideal for daily charts.
One instructor of onlinetrading academy has mentioned that for intraday trading a stoploss of 1.5 times ATR(15) is ideally suited.
What happens if you use 4 ATR?
your price wont ever hit the stoploss.
IT IS SAME whether you have a stoploss or not.is this ok for you?
Precision tech proposes using stoploss at
(Entrybar LOW -2) for daytrading.
In case of a short trade,entry is on Redcolor CANDLE and stoploss is (SHORT Entrybar High +2)
Entry is decided by a color change to green candle on 5 minute chart.the coding for colorchange is not known but seems to be based on Ema5 and Ema13 crossovers etc.
They insist keeping stoploss on trading chart
as a horizontal line marked with price at that level.there should be no stoploss on trading-broker terminal. Of course,you need to move stop in the trend direction if favourable,by 0.5% whener price moves by that much in favour.
This thread is generated for two reasons
1.To stimulate interest in the thing that makes or breaks trading success
2.To review available options on stoploss
3.To see if the kind of stoploss in the link i provided is already existing in our available zone.
http://www.theindicatorguys.com/trailing-stop/
see the chart.
http://cdn.indicatorguys.com/wp-content/themes/tig/images/indicator-trailing-stop-loss.gif
THe stoploss has to be dynamic and must change as market changes its behaviour.
After I saw Kelvins link and the code it became clear to me-the basic is same-use a multiple of ATR behind the price,the distance being set by multiplication factor.Jimberg uses 2.0, the referred afl from wisestocktrader uses 1.7,OTA suggests 1.5 for intraday.
Depending on the instrument you trade,you need to run tests and choose best multiplication factor,be it 1.5 or 1.7 or 2.0
HTML:
Jimberg,s trailing stop for both long or short is
TrailStop = HHV( C - 2.0 * ATR(10), 15 );
think
share your views.
good trading with lower losses
ford