Remember the research I did on how many days opened at or near day's high/low and closed at or near day's low/high?
That's why a lot of good intraday systems work with fixed stop loss much better than with a trailing stop loss.
That's why a lot of good intraday systems work with fixed stop loss much better than with a trailing stop loss.
https://twitter.com/ProdigalTrader/status/1316239295686955008
If I remember correctly, about 40-45% of the trading days in a year start at or near day's low/high and close at or near day's high/low respectively.
This means, if your system can reasonably get the direction right, a fixed stop loss system will end up making you the most.
This means, if your system can reasonably get the direction right, a fixed stop loss system will end up making you the most.
This is applicable for intraday trend following systems. For trailing stop losses to work really well, you need a much bigger room, and that has to be driven by volatility of the instrument you trade.
No matter what you trade, TEST the SL methods before implementing.
No matter what you trade, TEST the SL methods before implementing.
This was the thread I made in June regarding the aforementioned behavior of Nifty (and BN too).
https://twitter.com/theBuoyantMan/status/1274369287977754625?s=20
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