Dynamic Trailing Stop and Profit using ATR

NexusFi · 2015-09-30T13:38:40-04:00

It's better to use a stop that is based on price action, so for a momentum uptrend break, you're looking at placing the stop a tick below the lowest low, and move it up as the market swings and makes new lows. However, you also need to understand you can get gamed at the start of a trend by people running the stops before driving the price higher, so you need to test it. That's the other element I was considering but didn't look as "fancy" (just kidding here) as my other two options; …

Discussion in Traders Hideout

Updated September 30, 2015

Dynamic Trailing Stop and Profit using ATR

September 30th, 2015, 01:38 PM

#21 (permalink)

FABRICATORX

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Try programming both of them to operate side by side, then open the stops up super wide and work your way in from there.

In my brief experience, this allows you to find the sharp cliff of diminishing benefit to stops.

-Jimmy