When day trading the Forex, do you recommend using trailing stops? If so how many pips do you trail?
Question:
Answer:
Trailing stop is useful if you cannot wtch trade the whole time. Also, the value of trailing stops depends the time frame you are trailing in. Visit -
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It depends on what strategies you use. Backtest both trading without a trailing stop and with one and vary the trail to see what it most effective. Yes, it's a bit data-miney.
The advantages and disadvantages are pretty clear. Ensuring a profit versus getting out too early and leaving profit on the tables.
One technique is to decide on how many pips you are going to take from your trade, lets say it is 30 pips. Once your profit hits 10 pips you could move your stop to break even and then as it moves down to 20 pips profit move your stop to lock in 10 pips profit and so on.
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