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Re: Trailing stops vs that other way
Exits have always been the most problamatic for me.
Ever since I came off the floor over 15 years ago I have been trying to stay in trades longer. my traders dna seems to be that of a scalper but I hate paying 25% of my profits to my clearer.
I found something that works. I put a basic trailing stop based on the old 10 period 3 Average True Range behind my position. It only kicks in after I am a "bit" in profit so I don't get shaken from the trees by a wiggle. I then manage the trade by exiting parts of the position based on my trading plan but use the ATR as my drop dead stop.
10/3 ATR is good because it takes the volatility of the last 10 bars as its basis. Some people don't use anything but the ATR to manage the trade.
I fiddled with the numbers of the ATR but 10/3 (which is pretty standard stuff) seems to be the best for me.
Hope this helps
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