Trailing stop management

for best trading systems

Best trading systems have one common issue. The most important goal for trailing stop management is to decrease risk as trade develops in time.

Move your stop to entry level as soon as trade develops enough in your favor.

As soon as you move your stop level into values slightly above your entry level , your emotional status will be freed. This is because you already know that your trade will not finish with loss.

Move stop loss level under low of day immediately when you are in breakout trade and your stock price is closing trading day above resistance

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General rules says that stop value can be set below last support or above last resistance in trend move. Moving averages are also used very often as moving value of support or resistance. Your exit level could be set near them.

Here is example of setting trail stop values during stock uptrend :

I also like to move my stop level above entry point (break even) in case that stock price moved already at least to 50% of distance between my setup entry and my expected target value.

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