There's always a few points of volatility--do you simply do it by the bars (i.e. 2 bars below the last tick)...what do you consider a reasonable trailing stop that allows you not to get stopped out on a somewhat ziggy upward trend?
Note, its a tick or two below the last bar or two, not the other way around. So if you follow with a sell stop to exit a long position underneath each (or even the previous) up bar, eventually you will get stopped out.
Or, as long as you have a break even stop, if you believe that a valid test of bottom is in place, then keep your stop just underneath each swing low (which if an up trend is in fact happening, will be higher and higher each time).
Myself I'm quite happy making 5-10 percent on a trade and I just don't think about missing out on further upside. If it is a valid uptrend, there will be another retracement in which to position a buy stop above, later down the line.
I would rather exit a stalling position than risk some sort of price shock event (like an earnings warning, rarely so these happen without some sort of signal in price).
I use either 65 or 130 minute bars myself when trading stocks - for entry and usually for exit, but only if the daily signals a trade. |
