Trailing stop loss for trend following


I entered trades on Aluminium and Carbon Emissions April 13th, and they have been running in my favor ever since. I have no clue when to exit the trades. I am a fan of Rayner, and he suggests setting a trailing stoploss on 3ATR (daily time frame). But that feels quite extreme. Even if the trades are running in my favor, that would mean setting my stoploss around where I entered the trades. I could also set the stop loss when the daily candle crosses 20MA or even 50 MA. Or be satisfied when the RSI crosses 70?

What do you suggest? I’m most interested in hearing from those who have been trading trending commodities successfully.

Looking forward to hearing about your experiences,


I agree on the 3ATR thing. I like Rayner’s TA Youtube clips but a TSL on 3ATR is ridiculous: I hate giving up that much profit from the best price achieved and I don’t think its sustainable in real trading.

I just look for a dramatic acceleration of price - this will normally be followed by a pull-back.

Or a sequence of consecutive better daily closes or better daily highs/lows: these will likewise statistically usually be followed by a counter-trend close or counter-trend high/low - either way that’s an opportunity for re-entry if the trend resumes.

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You can set the stop loss at 3ATR timeframe but make sure that it is at the point where you won’t have to face loss and your profits are also not compromised.