what kind of trailing stop are you using?

Discussion in 'Strategy Development' started by Samba, Nov 9, 2002.

  1. Samba


    What kind of trailing stops are u using?
    How about trailing stops in countertrend positions?
    Diffrent trailing stops for breakouts and trend retracment entries?

    Any other thoughts about trailing stops?

    good trading all :)
  2. dbphoenix


    I've tried 312 different ways of trailing a stop, and the best one for me is to use swing points. You won't get out at the very top, but you won't miss the next leg of the advance either and have to deal with re-entry.

    The only glitch has to do with a sustained advance that goes well past the last swing low (or the opposite for a decline). In this case, you'll have to use your judgement as to when and where the advance is running out of steam. A simple MACD can help confirm your judgement. Trendlines, of course, can warn of a loss of momentum without having to slap on more indicators.

  3. This is the final piece of the puzzle for me. Exits are tough. At present I am using fixed number of points but am not too happy with it. Of course some discretion is always neccessary. I will always exit into unusually fast buying or selling or high tick readings on high volume. I doubt that any fixed type of stop will be satisfactory in the end. Like most things in trading it comes back to intuition, imo.
  4. Couldn't figure out the holy grail number 313?
  5. Samba


    @ dbphoenix: How do u defice swing points?
    @ easyrider: I´m with you. The exits are the toughest part. There are hundreds of discussions about entries but just a few of using proper profit taking exits.
    Also it causes the most stress in my trading because its the only part thats really uncertain till the second I close the trade. So I´m searching for a more predefined exit.
    I tried moving averages and time undependent methods like three line break.

    To let the good one run and take out at a valid point is what a pro seperates from a wannabe IMHO
  6. dbphoenix


    The top of the arc or the bottom of the trough in a retracement. You could also call them reaction highs/lows.

  7. I'm with easyrider...in fact Ive posted that very phrase "the last piece of the puzzle" concerning the same idea on another thread. I still do not have what I consider a good exit strategy...but rather a group of strategies.

    One simple rule gets me in.... every bit of knowledge I have... not like that's a lot.... to get me out.

    That's what I like about "always in" strategies... I don't have to decide when to get out!

  8. bobcathy1

    bobcathy1 Guest

    I do them by the seat of my pants and the skin of my teeth.
    I never put them on automatic stop.
    It requires more finesse than that.
  9. when you know the exit you know everything
  10. That is one for the book of trading axioms.

    Nice going profitseer!

    #10     Nov 9, 2002