Trailing Stop Tool for caculating BEST possible quantity of points

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Guys, Hello !

A question for you all regarding Trailing Stop order also known as dynamic stop loss: I am wondering if there is any tool or calculation procedure how many points should be used in Trailing Stop order for best possible success and best benefit?

I am aware that Stop Loss order must be first used and this Stop Loss must be on the SAME ( * ) distance (quantity of points) away in unwanted direction of a trend comparing to ( * ) wanted quantity of pointns in Trailing Stop order. Example: current market price is 0.97184 and i choose 150 points for trailing order. This means for uptrend position, stop loss must be 0.97034 and/or for downtrend position, stop loss must be 0.97334 but I am not asking that.

Actually my question is completely different: Being very anxious that smallest retracement towards unwanted direction could burn wonderful possibility for a good trade. Particularly at the time when Trailing Stop is about to move to the next level. Is there any service, any tool, any procedure, anything, that could tell me how many points on D1 chart should be involved to the Trailing Stop order? Small retracements towards unwanted direction always happen. Thats normal… The trade could be choked via Trailing Stop too soon causing automated closure of position. Main danger is where Trailing Stop level moves….

Any tool/procedure/resource/etc on how many points to use for Trailing Stop?

2

You could base your trailing stop-loss distance on ATR - Average true Range. This is the height of each bar in the time-frame of your chart, from high to low, averaged out over the last n bars. So an ATR20 would be the average height of the last 20 bars. If your stop was 1 x ATR20 away from current price, price would have to move further than the average height of a bar over the last 20 before the stop was hit. Of course, you could use 2 x ATR20, or 0.75ATR20 or ATR14 or whatever times whatever ATR you wish, according to your strategy and risk tolerance.

The good thing is that if volatility changes, then so does your trailing stop distance. The bad thing is you have to repeatedly change the stop distance as ATR does change.

3

Lets take a different POV and very good question.
When I first place a trade I use a hard stop loss as a safety gap and I seldom get stopped out. (maybe I’m to wide)
However when my trade gets a good portion into profit its time to move kill my SL and add the trailing stop.

That said I usually have two trades on at 1/2% of my account and might close one at that time allowing the other to run for the money.