Trailing stops

[nzbryant]

Hi all

What have you found works best for trailing stops?

I have tried:
- 2 times ATR trailing - low win ratio as many wins dont hit 2ATR

- 10-15 pips trailing - often miss big wins

- last higher low or lower high trailing - if on same time frame as entry often leaves a lot on the table if trade reverses, if on smaller time frame than entry often stops wins before they have a chance to grow large.

Your experiences?

[kiropes]

Hi
one of the best instruments for the trailing-stop is Parabolic SAR

[elmagd2000]

Hello,
ATR is a good alternative because it is adapted to market volatility. you may need to do some researches and analysis to pick best values for every pair and every timeframe. Moreover, you may use ATR for targets as well. Taking MM into consideration, try stop 1.2atr and target 1.8atr.

Hani

[perching]

Hi,
Could you please indicate what ATR stand for?

Thank you
Perching

[elmagd2000]

Originally posted by perching
Hi,
Could you please indicate what ATR stand for?

Thank you
Perching

Average true range
look at:
http://www.incrediblecharts.com/technical/average_true_range.htm
http://www.stockcharts.com/education/IndicatorAnalysis/indic_ATR.html
http://www.equis.com/Education/TAAZ/?page=35

Hani

[autofx]

nzbryant,

What timeframe do you trade in?

Have you tried experimenting with the Parabolic SAR parameters?

Have a look at the trailing stops here.

The first chart, showing the short trade that took 200+ pips of
profit, is a good example of my own trailing stop scheme in the
hourly timeframe. It is not based on the Parabolic SAR, but rather
on specific pip intervals that decrease/tighten as the action
moves more and more in favor of a trade.

Notice that the first few stops are quite far from the action, and
then they tighten as time goes on and as the action moves more
in favor of the trade. One of the things that activates a new
trailing stop is an hourly close that is more in favor of the trade
than any seen since the trade was opened.

It requires great patience to adjust trailing stops manually and
see results, but I think it's worth it.

[nzbryant]

Par SAR seems to have some admirers. I have to look into the calc so I know how it is constructed.

Off topic: Are there any volume stats available for currencies? I find the lack of them is a hindrance - I am using price, volume and valuations to do much better in stocks than in currencies actually.