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Why
does the trailing stop not change on every bar ?
Answer:
Using
an example in a 'Long Trade' with a '100%' stop on a 'Single'
bar.
The trailing stop is calculated on every new bar.
If the stop calculated for the latest bar is NOT greater
than the previouse stop then the previous stop value is
used.
This is done so the value of the stop never goes down.
If it did the it would not offer any protection is a trade
moved against you.
Sometimes one stop value can run for many bars if none of
the subsequent bars have created a higher value.
If one gets the percentage right they can follow the long
moves very well.
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Reference:
Q080414a
Written : 14 April 2008
Revised :
TESS Real Time Version 1.1.00
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