I made an adjustment this past weekend to my trailing stop strategy – primarily based on the current market conditions and what I see as difficulty in maintaining gains in Break Out moves.
The adjustment involved 2 adjustments:
1) When I put the trail stop on (in terms of the time that elapses once an entry in a trade has been made). I now wait until a % of the daily volume has traded. This also requires additional focus on the trade until the tr stop has been set.
2) The trail stop amount (using 1%)
This adjustment is just for trades within the Day-trade account only.
In reviewing this past week’s trades, and back-testing to prior settings, the review yields the following:
4 trades would have yielded a better return if using prior settings but all other trades allowed for capturing more of the gains using the adjustment. So for now I am leaving the adjustment in place.