In response to my trades given in the previous post, I have comments on the trailing stop loss which was ‘missing’ in my trading plan.
mbansalicy says “one thing i missing in your trading plan is trailing stop loss”. Nikhil says “Also, one should keep trailing stop loss”.
So, what happened to the trailing?
My Notes: A bullish trend day will usually open in the lower part of the day’s range and close in the top part. Within the range, there may be some choppiness which is difficult to predict. A trailing stop may stop me out and then the trend could resume. My risk is well defined – it is the low of the day. I have to accept the intraday choppiness if I want to catch the trend day. This is the reason, there is no trailing stop in ORB trades (essentially the ORB leads to a trend day).
I have done ample system testing to justify this view.