VEEFX replies to: M TTT M


{quote} Trailing … continued AUDUSD [Example trailing – Long side] {image} Trailing by an octive gap. Trailing can be applied manually by the trader adjusting the SL price value but the trader must be at or near the terminal as required. Trailing can be applied in the MT4/5 settings using “Trailing Stop” but the platform must remain open. Trailing can be applied via a script or Expert Advisor (MT4/MT5) but the platform must remain open. For single or low number of pairs being traded a manual trailing approach is possible but somewhat inconvenient….

Trailing …. continued

AUDUSD [Example trailing – Short side]

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Advantage of trailing with only 1 octive gap is that in a strongly trending market with less than an octive pullback plenty of the move is captured.

Disadvantage is that in a ‘whippy’ market the trade might be taken out early resulting in a missed opportunity to grab more profit.

There are many different approaches that can be taken when applying trailing stops.

The difficult part is deciding which trailing method is the ‘best’ one.

Since trailing stops are applied before the fact, it is never possible to know which approach will be the best !

What we can do though is form an expectation on the likely flow of price for a given pair over a preferred trading session based on the OctiveGap.

An appreciation for the typical PA within the OctiveGaps of the MML Grid can be found by observing historical charts.

Excel can be used to manually enter the data and then an analysis can be completed.
Alternatively, an informative indicator could be coded with suitable inputs that allows for the collection of a preferred range of data.
The gathered data could also be transferred to Excel from the indicator and analyzed if required.

There are plenty of tools that could be used but the bottom line is deciding how far one should go with this type of analysis.

For example, if a trader is very confident in the Trading Method and the Reward to Risk ratio being applied then waiting until price moves say 2 or 3 octives before locking in at BE+ pips(to cover: spread,commision,swap) might be the best approach.

A trader could also form an expectation as outlined above about the volatility of a given pair and seek to trail at a tighter gap.

The Trailing Stop discussion is provided here since it will be applied to the MTTTM strategy.

Testing may be performed in the background with key outcomes posted to this thread.

This motivation comes from analyzing the demo trading account and looking for techniques that might reduce losses and contribute to Equity% gain.


Master your Mind then Master your Trades

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