Been trading for some time now, and not until lately have I started having success. Basically I started off scalping for 2 or 3 pips when my system indicated a good entry. I’d end the early and then see if it was a good trade or not without having to risk anything. After doing that awhile I am beginning to see which trades are good and which ones aren’t.
Anyway, my question is. Say the minute before a news release I put in a buy order and set my trailing stop loss to 10 pips. So one ofs two things happens, news is released and it goes the other way and I lose 10 pips, or it spikes in my favor and i get 50 or so. This sounds good in theory. But is it possible?
I can’t see why that shouldn’t work. I guess the risk lies in spikes of volatility hitting your trailing stop even if price is generally moving in your desired direction.
Quality of broker execution will also affect of course.