Trailing Stop or Scale out?

Beginner Questions
1

I’m developing my own little edge which seems to be doing nicely. I’m waiting for peaks and valley on hourly charts and waiting until it breaks in the other direction and going with the new direction.

Once a move starts, as the market can and will do anything, I can’t see any way of knowing for sure if the move will be only +30 or go all the way to +100.

Over a couple of hours many of these moves went +1-300 pips. But, it would drive me nuts to sit and wait and see if it kept going (and holding out through ocillation that moves way back). So, I just get the initial move that has momentum, get out and then get back in with trades in the same direction as price ocililates down and then back in my direction.

Anyways, my question is about trailing stops VS scaling out. Would it be better to use a trailing stop on the initial move or scale out in thirds or half of the open trade???

I don’t even know if I can scale out of an open trade in MT4, from the open trade it’self???

2

Scale out if you can otherwise set and forget your trailing stop.

3

What’s the reasoning behind using scaling over a trailing stop? Why do you think scaling out is better?

4

You should not scale out. This will limit your possible wins. You dont want to limit your profits(let your profits run). I would suggest finding a good way to use trailing stop. Your exit would then be done by the market, hitting your stop, and hopefully on the winning side :slight_smile: