DislikedBytebodger
I do not want to drag this on, but I do agree with you. One always has to have a stop loss, maybe not always meaningful with regards to the price action but at least to have some protection. When I spoke about not having a stop loss I meant not having a stop loss close, i.e. 20 pips etc.
I will follow you posts. Maybe I'm wrong.Ignored
On one hand, I really like the process of using the SAR points for progressive SLs. I hate automated trailing stops because they can take you out of a winning position based on fast, temporary spikes. However, I really like doing manual trailing stops. But if you do manual trailing stops, the question becomes how to determine where to set those SLs. The SAR values solve that problem.
On the other hand, this can still lead to SLs that are too tight. Take a look at this morning's trade on EURGBP. The first green arrow shows where I went long this morning on my first trade. The second green arrow shows where I went long on my second trade this afternoon. As you can see, the first trade would have been a winner - but I was stopped out based on my progressively-tighter SAR-based SLs. And in homage to Murphy himself, the price directly reversed and headed back upward after falling to a level necessary to take out my SL.
So the jury is definitely out on the SAR-based SLs. For the time being, I will continue to use them - but any SL runs the risk of taking you out of an otherwise-profitable trade. I will continue to monitor the situation...