Do you use Trailing stops, hard stops or both?

For auto day trading:

always a hard stop defined at entry, and trailing stops which are essentially take profit conditions for 25% retracement if large move occurs, or exit at 2 bar low if profit is sufficient, also a time stop by manual exit - don't let the last trade persist for too long if its not working.

 

Hard stops for bad news, T-Line, and also Targets for good news.

Exits Only _- What MoVing Exit Techniques Work Better Than T-Line Trade Exits?
https://elitetrader.com/et/threads/...s-work-better-than-t-line-trade-exits.349010/

cued... no waiting

 

Great idea Mr. Calhoun, assuming the initial wide stop is not triggered often.

 

Right. And there's been lots of reversals so it's a challenge.

I'll keep testing on $20ish stocks and ETFs.

Setup example:
Yesterday chart range $20 - $21. Today premkt gap range $21.3-$21.8
I use buy stop $22.2 to enter, with initial stop just under low at $21.3
Tighten up trailing stop if big .50+ move in my favor.

 

I use hard stop initial setup. I only apply trailing stop when market condition improves further in my favor.