{quote} Quote "No I do not have a moving SL, if SL is hit, I lose exactly 2.50% of my account, if I move my SL further away, it will also mean my loss for that trade if hit SL will be bigger, which is not ok" When I asked you about a moving S/L my thoughts were more on your S/L being moved towards your T/P so that if you just missed your T/P and the market reversed strongly your S/L would then be closer and thus your lose for that trade would be less.
You see, the problem of moving SL towards the TP is that, you might get stopped out with a small profit. Sometimes the trade goes into your favor initially, hit 50% or more TP, then reverse and become loss making, before finally go to hit TP. But what if the trade never go into your favor from start to finish? There is no basis to adjust the SL to a lesser one, because the level you decided to place the SL is the room you think is sufficient for it to move around.
So at the end, you would always suffer 100% of the SL (if trade never goes into your favor), but not always getting 100% of the TP because of trailing stop.
It's a hard task to balance between adopting a fixed TP or trailing TP, each of them have pros and cons.
On some days, where the price is not moving much, moved just enough to hit the TP, then fixed TP method wins here, trailing TP might have give little no zero profit in condition like this, of course sometimes there are big candles to favor trailing SL, but how often does it come? And price often like to retrace, if it retrace enough, the trailing will be hit, only to see it resume in the correct direction.
I decided it is too much of a hassle to me, so I go for fixed SL TP, for now. Also the result is easier to track without the variable gain/loss %, i value consistency more than variable uncertainty. I am open to a systematic/objective/provable methods of trailing if someone so kindly shares with me, that I can follow stress-free. Trailing SL to protect capital is definitely a good compliment to a strategy, just have I have yet to deep dive into this area or too concerned about it.
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