use and operation of the ARCA Trailing stops
Re: operation, here is the link:
realtick.com
Re: Use
I have used them quite a bit, and the only thing I really don't like is that when it triggers, it uses a market order. If it happens to trigger exactly at a pivot point, when everyone and his brother thinks it is turning, then a zillion orders hit at once, you will get a crappy market order fill. You can, of course, set the trailing stop as tight or loose as you want, which can help. I usually set it loose enough to allow a bounce of the same size as already happened several times intraday, but will catch and execute during an actual reversal.
I tend to use it when I am up a couple points already, see more upside, but want to leave myself open to get another couple points while protecting most of my gains (and moving on to focus on other trades).
Dave |
