Australian (ASX) Stock Market Forum

Reply to thread

It is for this reason that your stop line should be the greator of either the initial stop (which may be 10% below your purchase price and is therefore fixed) or the trailing MA or ATR stop. That way, if at the start of the trade, your trailing stop is too far away from the price action, your initial stop will provide you with the protection until such time as the trailing stop will have risen sufficiently to take over (hopefully).


Top