Trailing stop
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Thread: Trailing stop

  1. #1
    Join Date
    Nov 2006
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    11

    Default Trailing stop

    I am facing difficulty with trailing stops.I am stopped out because of the whipsaw movement,even when the market moves in the direction I thought.

    yesterday entered short (EUR/USD) @ 1.3317 with a trailing stop of 15 points.It peaked to 1.3336 and then dropped to 1.3258.i was stopped out @ 1.3332 ending my deal in a lose.

    How can i use this trailing stop in a better way.If i use a higher trailing stop points then I might loose on the gains that i have made.Is there any other mechanism where i can control it more efficiently.I was wondering how position traders use this?

    Thanks

  2. #2
    Join Date
    Nov 2006
    Posts
    8,766
    Depending on your broker's spread, a 15 pip trailing stop might a little tight. For example, if EUR/USD spread is 3 pips, you're actually using at 12 pip stop. That provides very little wiggle room for your trade.

    You said you sold @ 3317 with trail stop of 15 pips. Could I ask what your stop loss and profit target were?

  3. #3
    Join Date
    Nov 2006
    Posts
    11
    Thanks for the reply.

    I hadn't put any stop loss since I was using trailing stop.If i had used the stop loss it will be the same 15pips.I was not sure of my traget profit, had estimated in the range of 1.3280, then as I was using the trailing stop thought let it get stopped out by itself- sacrificing the 15pips.

    Appreciate if you could suggest any tool to get the target profit.Support and resistance was what I used (any tip how to use this tool more efficiently).

    Thanks

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