Trailing SL on lower time frames? How? Help needed...

EDIT: I meant to post this into "trading discussion" not trading systems. Or even rookie talk :-)

I've been having mixed feelings about trailing my SL with my strategy that I trade on the 5M when my average stop loss is between 5-10 pips. I'd like to demonstrate my issue with an example:

I enter a short trade, SL is 7 pips, no fixed take profit target as I trail my stop loss. Price moves 11 pips into profit in two straight candles, reaching roughly 1:1.5 RR. No "problem zone" detected by me that could push price back up. Now here are the problems:

A) Since my SL is 7 pips and price moved 11 pips into profit in two straight candles, I basically do not have a technical place to put my SL.
B) Even if I did, where would I put it? Let's assume I put it to break even, which is okay, but I am already up 1:1.5R and being taken out for break even after having a 1:1.5 "in the bag" already, that'd be problematic and frustrating. Also, putting it to BE wouldn't probably be smart as price could come back and retest the area where I entered.
C) Since there is no technical place to move my SL (i.e. a new swing, above a resistance, etc.), I do not move my SL at all, leave it at 7 pips and wait until price action confirms a place to move it.

What are the problems with A, B or C?

A) I really want to go at least to break even or even lock in some profits, but there isn't enough distance created and a retrace could take me out for BE and continue the move down or take me out for a tiny profit and then continue the move down.
B) Putting to BE might be a lose-lose situation as I could be taken out and price continues further short after being taken out as there isn't enough distance created.
C) Not moving SL to break even or into profit and THEN be taken out for a full loss whereas I had a 1:1.5 is just plain dumb, isn't it? It can happen of course even if I haven't identified a problem zone that could reverse price.

There could be one simple solution to this - testing! However, I did and I was not able to really conclude what would make most sense due to mixed results since every trade feels unique in it's own way.

Would trading on a much higher time frame be a solution? Definitely, it would as pip-wise I had to wait longer until I can move my SL. But that is not an option for me as I simply believe that there must be a solution to this exact problem on lower time frames as well.

Would going for a fixed target be a solution as well? Sure, but I trade the trend, buying/selling the dips and often looking to catch the runners. Suggestions on that are also welcomed!

Any feedback is appreciated! Hopefully I can receive some clues how to tackle this problem as it's been bothering me for a longer time already. I believe that at the end it is up to my strategy and I have to decide for myself, but listening to others ideas and input could help potentially help me finding a final solution to this.

This is exactly the problem I was facing for a very long time. I trade bigger timeframes and bigger stops than you, but same dilemma was coming up constantly. Only difference is I know that it only makes sense for me to target 1,5R-2R max for TP. My stops are usually between 25-40 pips, and so the TPs are about 40-80 pips. And I had 3 options:

1. After I set SL and TP, just leave them and one will get hit eventually.
2. Move SL in my favor pip by pip until breakeven as the trade moves in my direction.
3. Whenever I see something bad I close the trade manually no matter how it stands.

In my opinion trading comes down to 3 things. The edge, money management, and psychology. This is the money management part, this part can increase or decrease (or even neutralize) your edge, but won't give you an edge if you don't have one.

What I found is that the first option is the worst choice related to how the edge and the strategy plays out I'm doing. The second is the best, but it is not much further ahead of the third one. The main point is, if your entries have an edge it doesn't make too much of a difference how you do the money management part. All it does it modifies some stats like your expectancy might go higher, or drawdown might go lower, but it is not the main part of the strategy. The edge is.

Over time you'll have every situation possible, trades coming back straight to your stop taking you out and going 50 pips further against you, trades blasting through everything going 80 pips in your direction hitting your TP in 10 minutes, trades grinding for 2 days in a 40 pip range before hitting your TP or SL, and trades coming back just to stop you out on the very last tick of the reaction then going where originally your TP was.

The worst thing you can do it trying to always modify your money management based on how the last couple of trades went. Yeah there will be trades coming back for your stop, it sucks, but you won't find a method which always customizes itself to the future. Because this way you pretty much try to predict the future, which is impossible on a case by case basis in trading.

The point is the main thing you should be worrying about is do your entries have a long term edge? If yes, then just go with a money management strategy you'd think would work best with your strategy and do that consistently for 3 months (this is the 3rd part, psychology, being able to follow a plan consistently). After that, look back the trades and see how well it would have done with the other MM strategies. If better, then try a different one, if worse then probably you have found the MM you should (part 2, money management is in place). If you have a positive expectancy (part 1, the edge), you managed to learn trading profitably.

If i scalp i do not touch my SL, because i trade small pips. Eventually this can help. Go for a CRV 2:1 and go to BE after the price has make a rest and is going further and this AFTER you have reached the 2:1. Now you can stack trades and keep the overall loss to zero. If price hit SL you have lose nothing and if price go further you have make a high CRV trade.
I would go out if the first SL is hit. Go out with all positions.

Use trailing stop or not is always a hard decision to do...

My answer, on the base of testing is: use a smart place to put your trailing stop, normally (in a short trade) above a resistance.

I made an EA that uses trailing stop, but it only moves it if:
1) price is beyoud a thershold, AND
2) there is a good resistance to move it to.

so, how to tell about 2) if there is a good resistance or not?
My answer is rather complicate....if you are intersted you can check here

https://www.forexfactory.com/showthread.php?t=772227

Wow, this is the first time that the first reply on my question just feels and looks so spot on. And so professional! I am happy that I am not the only one with this dilemma.

Okay, few comments of what you've said:

- Yes, it seems often like a unique and new situation and often feels so unpredictable. As you said, sometimes it goes straight to TP, sometimes ranging, sometimes this, sometimes that.

- Yes, my system has an edge, so that is good news already. Everything else, like money mgt. and psychology need to be worked on.

- Agreed, testing one MM method will help me understanding what works best and what not. So instead of re-adjusting all the time, sticking to one way of trade management and testing would be the right choice it feels.

Thanks a lot for your insight!