As many on here know I'm working on a intraday price action strategy based on short term trends.
Knowing what type of Stop to use is obviously important.
AFAIK, FXCM only offers a minimum of a 10 pip SL.
The problem with the dynamic trailing SL is obviously the intraminute whipsawing. Given the amount of whipsawing there is in price formation, it's clear a DTSL will be triggered sooner than one desires.
Imagine on a 5 min chart, it'd probably only take 2-3 candlesticks for the whipsawing to trigger the SL.
OTOH, a fixed 10 pip trailing SL will keep one in the trade for longer but leave room for the trade to move against you without the SL being triggered.
Knowing what type of Stop to use is obviously important.
AFAIK, FXCM only offers a minimum of a 10 pip SL.
The problem with the dynamic trailing SL is obviously the intraminute whipsawing. Given the amount of whipsawing there is in price formation, it's clear a DTSL will be triggered sooner than one desires.
Imagine on a 5 min chart, it'd probably only take 2-3 candlesticks for the whipsawing to trigger the SL.
OTOH, a fixed 10 pip trailing SL will keep one in the trade for longer but leave room for the trade to move against you without the SL being triggered.
Problem with dynamic trailing Stop Loss
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