If you don't mind me asking, what depth do you guys run your trailing stops at?
I ran at 50 the other night and got taken out on several pairs when they bounced. (volatile night though)
tia
Slam
yeh good question slam. I'm very interested in Arco's answer, hes obviously had a lot of success with his trailing stops in the past.
As I commented recently I'm just putting them in at something like 150-200 out of the money only when I leave the screen - only to prevent catastrophe not to establish a risk/reward ratio.
Stop ranges can vary depending on your time scale, and whether
you are a short/long term trader. That you will need to decide
independantly. Xerof has mentioned the FIB 50 idea, and the
2% money management rule.
There are many indicators that can be used as a stop,
and using a combination is advisable.
These are the SL techniques I use.
Last Pivot. (see site below)
Moving average.
Candle Reversal Pattern.
Chuck Le Beau's Chandelier.
CBL 3 or 4. Tighten as trade progresses/faulters 4-3-2
Fibonacchi Retracement 50-618. (As mentioned by Xerof)
Gann Support/resistance.
Gut feeling.
As a start, I suggest you experiment with some of the
SL techniques discussed here.
Yes the 618 fib is bound to have some effect
because TA's will be monitoring that point.
On a reversal at this point there is always the possibility
of a rally to test the old brokwn support at 7195/29th April.
This ties in with the 50% FIB just broken, and may align with
possible MA resistance following from above.
Yes thats as far as I see it going - 95/00 area. I have my trailing stops at 7215 for tonight and might have a look at the rugby instead of FX this evening!
Reply With Quote
Bookmarks