I am confused which one is more profitable in the long run and which one I should follow
Trailing Stop to book profit [B]Vs [/B] Fixed Risk:Reward(1:2)
Is there anybody have any back testing results or statistical information on this ?
Bro you do ask the tuff questions. There is no right or wrong answer to this. It depends on your system. From memory you said you’re swing trading so for me fixed R:R woukd be the way to go. Give the trade time to work and have faith in your system. After all you know it best.
Trailing stop definately will increase your win ratio but what will be the cost in lost returns.
It’s really depends on position but trailing stop is not a good option for most of time. Before open the position, you should decide S/L - T/P levels and sit on your hands during the position. Trailing stop just prevent you to reach T/P target. So you can win %0.2, %0.3, %0.25 then loss %2 because of original S/L.
Thank you guys for the inputs. Thanks for the time.
The law of averages says letting winners run (using trailing stops) is more profitable. Of course, finding a suitable trailing stop to use is a tough task.
I would probably say trailing stops but then again, it comes down to how you apply it…
And the question is a loaded one…
I agree with everyone…
Hello Godzilla…
My only recent developments, in aiming for longer-term trade setups over many weeks or months, is
to wait until the trade has solid momentum until it is in profit by at least 100 pips, then set (or change) a
stop as a dynamic trailing one, so that it will start being 100 pips away from price, giving it enough breathing
room… If it got choppier, I may change that one to a fixed stop and bring it up manually every 100 pip move
or use a fixed trailing stop moving in 100 pip steps…
I am sorry that I have no figures for you…
Best of luck…
Again, you would better provide us with
the full picture, that is, the context of your
question, in order to make our answers
less generic. . .
I know one thing you can make profit in any pair in which you made a lot of practice . We know ups and owns of its market , do trading according to the trends. On sayings of others we cannot make profits until we not tried this pair many time . We all are different in our choices as way of trading selection of lot size , pair and time of trading.
Adapt. If your system tells you to get out of a trade, you get out of a trade. No rules here.
It is just your feel about the trade, trailing stop is better if you can monitor your charts regularly, or you don’t have the option but to go for a fix TP and SL .
Use trailing stop in long-term orders and for scalping its better to use fix SL and TP.
It mostly depends on different setups and on your trading style. As forex trading is a random market so you cannot just fix one rule and keep it. You need changes with the passage of time. So on some orders you need to trail while on some others you just need to set fix SL and TP.
It all depends on your own style.
Some traders only trade with fixed stops, some only with trailing-stops, some with mental stops (not actually placing the stop but knowing where to get out).
Some traders use a combination of the 3.
It all depends on your trading style. Some styles are leaning more to fixed stops (e.g. using fibonacci), and some styles are more known to have trailing stops (e.g. moving averages).
So there is no fixed answer on which one is more profitable. It all depends on your trading plan.
Good luck on finding what suits you!
The answer on this question you should look for in your self. What ever someone else will tell you it doesn’t matter. You should test both ways and the income will tell you what is the right way.