Trailing Stop Levels
Posted: Nov 13 2019
I need to start using the trailing stop exit strategy. However, I am confused over the specification of multiple levels.
Is the tick/percent specification to be based on the prior level or is it based on the tick/percent movement from the price where the exit strategy was placed ?
Example:
Level 1: Profit 10 ticks, stop loss 4 ticks
Level 2 Profit 5 ticks, stop loss 6 ticks
So when price has moved 15 ticks or more in my favor, when it reverses 6 ticks, the stop loss will be triggered.
However, if the price has moved 14 ticks, when it reverses 4 ticks, the stop loss will be triggered.
Is this how it works ?
Is the tick/percent specification to be based on the prior level or is it based on the tick/percent movement from the price where the exit strategy was placed ?
Example:
Level 1: Profit 10 ticks, stop loss 4 ticks
Level 2 Profit 5 ticks, stop loss 6 ticks
So when price has moved 15 ticks or more in my favor, when it reverses 6 ticks, the stop loss will be triggered.
However, if the price has moved 14 ticks, when it reverses 4 ticks, the stop loss will be triggered.
Is this how it works ?