System Messages

This forum is for members of the Apiary Investment Fund. To learn more about how to get involved, sign up now or fill out the form below and preview the training right now!

RefineTrailing Stops

 
Back to Forums
 
 
pstewart84

RefineTrailing Stops

Hello,

I use trailing stops but I'm curious how I define the gap between the current price and the trailing stop. Earlier I had a trailing stop that was way behind the current price, where I would potentially miss out on 20+ pips if the price turned around to use the trailing stop. How do I keep it closer to the current price or define that trailing gap?

Kind regards,
Paul S

Sun, 09/01/2019 - 8:47pm
 
Pavneet Ghai

I too use trailing stop but prefer to do this my self, I not rely on auto trail

 
broslansky

Paul,

Trailing stops are more of an art than a science. Each market has a "mind" of its own. Additionally, there are windows throughout the day where larger / smaller trailing stops are more appropriate.

The general idea I follow is to predetermine the amount profit that I want to pursue. When then market moves in my intended direction and I receive my intentions, I'm satisfied with the gain. As you mentioned the market can (and will) turn at any moment.

Finally, with Alveo, you need to leave the software running for the trailing stops to adjust.

Like Pavneet says, I prefer to manually adjust the stops. My work life balance allows me to monitor the markets at more frequent time slots throughout the day than other traders. So, watch your work life balance at the same time.

LMK if I can further assist.