Yesterday I went and looked at my old trades to see if trailing stops would have performed better. Now, when I say “trailing stop” I mean moving my stop loss down/up to the next support/resistance level once the price crosses a higher/lower resistance/support level. The results were very good, so I implemented it today.
All trades were with my new software, trailing stops (except 1), and stochastics.
Today I had 5 trades, of which 4 were longs, and 1 was a short, with 3 losses, and 2 gains. The total of the day was (+.74%), or (+$199.72). Trades were:
DOW – Long (-1.09%) (-$315.41):
AMD – Long (+1.41%) (+$405.41): Didn't use trailing stop
COST – Long (-.31%) (-$91.22):
MTG – Short (-1.56%) (-$454.56): Stopped out, held on the last 300 thinking it would go back down but it didn't and I forgot about it while I was in AMP :(
AMP – Long (+2.29%) (+$655.50): Would have only made .52% without trailing stop, so I’m glad I used it :)