Trailing or Fixed Stop-Loss?

Discussion in 'Automated Trading' started by trhudson, Nov 21, 2005.

  1. I have a system that trades and am currently using a fixed stop-loss. The system trades quite a few stocks a day, 20-50. The initial stop is exactly the same amount away as the initial profit target.

    Would the system generate greater returns if I used a trailing stop? The stop is not small at all, as this is not a scalping system, but a trading system.

    However, currently some positions go from being winners to losing my max at risk. Just wanted to get some thoughts...I am currently trading the system with the fixed and tracking how the system would do using a trailing stop and it's obvious at first glance that the trailing stop may present me with more profits, as my risk per trade is reduced as the stock goes in my favor.

    Just trying to make it perfect...