Trailing stop question

Trading Discussion
1

Is using 2ATR a good way to set my trailing stop loss?

I have previously traded stocks and 2*ATR was a good way to set my stop loss.

Is there a better way with FOREX? For example if I’d bought GBP/USD at close for 1.58278 (4hr chart) while the ATR = 0.0044 I would set my trailing stop at 88 pips?

Or am I miss reading and 2*ATR is 440 pips!?

I did a quick google and people are advocating a 10% * ATR? Which in this case would be 4 pips? Are my calculations wrong? … but if 2ATR IS 440 than 10% would be 44…

I’d really appreciate your help in my creation of a system to trade on the 4hr and daily charts where the stop loss gives me a clear indication that the trade has gone against me with out whipsawing me out only to see it reverse in the direction I predicted!

Thanks SO much in advance!

2

Hi bmcl2343. You are right, the 2ATR is 44 pips plus 0 points or pippetes to form 44.0 pips. If the ATR would be 0.00443 then that is equal to 44.3 pips.

3

Ok great, thanks!

So is 2atr a widely used and effective trailing stop in fx?