How to gain an edge trading with trailing stops. :eek: This is writtened with respect to trading the Euro. 1) Use any indicators. Preferrably a Trend Following one like Exponential Moving Average (EMA). 2) Set Take Profit targets and Stop Loss targets large enough to avoid the Market's House Edge. http://www.elitetrader.com/vb/showthread.php?s=&threadid=53586 For this strategy i recommend profit targets of 30-50 ticks/pips. 3) Whenever you're in profit by 15-20 ticks/pips, shift your Stop Loss to breakeven. Whenever you're about 10-15 ticks/pips away from your profit target, shift your Stop Loss to lock in current profits. Analysis You will either: 1 - Get stopped out on your initial stop. 2 - Get stopped out at breakeven. 3 - Get stopped 10-15 ticks away from your profit target. 4 - Take profit. Normally if T/P and S/L targets are set, a player with no edge will have total profit = total losses and get chipped to death by commissions. However, because you trail your stop, many losses will not get realised and thus give one an edge. Comments, corrections and additions please go ahead!