Hello,
I'm trying to set up an ATM trailing stop strategy and want to see if I've made any mistakes in what I'm planning to do.
Please let me know if this is a legitimate strategy and if there are any mistakes that need to be corrected.
With this Auto Trail 3 Step strategy, the following should occur based on my understanding:
• Upon entry, an initial Stop Loss will be placed $150 from your entry.
• A Profit Target will be placed at $150 from your entry.
• The tick value for the YM is '1' and the Point Value is $5. So in the Stop Strategy dialogue, in 'Step 1' of the Auto Trail, the Profit trigger indicates that when you have a $100 profit (20 ticks x $5), the Stop Loss will then trail your position by $100 (20 ticks x $5).
So at this point, you've set it up for breakeven if prices turn against you by $100 or more. You're long and prices move up by $100, so you've guaranteed breakeven at this point.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $100 (20 ticks x $5).
• Prices move up by another $100. So at this point, you have $100 of profit and a Stop $50 from your position. The Profit trigger in 'Step 2' indicates that when you have an additional $50 profit (10 ticks x $5), the Stop Loss will then trail your position by $50 (10 ticks x $5). So at this point, you've locked in $50 of profit.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $50 (10 ticks x $5)
• You currently have locked in $50 of profit. The Profit trigger in 'Step 3' indicates that when you have an additional $200 of profit (40 ticks x $5), the Stop Loss will then trail your position by $50 (10 ticks x $5). Prices move up by $200. So at this point, you've locked in $200 of profit ($50 of profit locked in + $200 move and $50 Stop.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $100 (20 ticks x $5)
• You currently have $200 of profit locked in with your Stop strategy. Prices move up by $100, so at this time you've locked in $250 of profit with your $50 trailing Stop. Prices then move up by another $100 giving you $350 of profit, so now you've locked in $300 of profit. Prices then move up by another $100 giving you $400 of profit, so now you've locked in $350 of profit. And this continues until you get stopped out, or the market closes.
A screenshot is attached.
Would this strategy work, or have I set it up incorrectly?
I'm trying to set up an ATM trailing stop strategy and want to see if I've made any mistakes in what I'm planning to do.
Please let me know if this is a legitimate strategy and if there are any mistakes that need to be corrected.
With this Auto Trail 3 Step strategy, the following should occur based on my understanding:
• Upon entry, an initial Stop Loss will be placed $150 from your entry.
• A Profit Target will be placed at $150 from your entry.
• The tick value for the YM is '1' and the Point Value is $5. So in the Stop Strategy dialogue, in 'Step 1' of the Auto Trail, the Profit trigger indicates that when you have a $100 profit (20 ticks x $5), the Stop Loss will then trail your position by $100 (20 ticks x $5).
So at this point, you've set it up for breakeven if prices turn against you by $100 or more. You're long and prices move up by $100, so you've guaranteed breakeven at this point.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $100 (20 ticks x $5).
• Prices move up by another $100. So at this point, you have $100 of profit and a Stop $50 from your position. The Profit trigger in 'Step 2' indicates that when you have an additional $50 profit (10 ticks x $5), the Stop Loss will then trail your position by $50 (10 ticks x $5). So at this point, you've locked in $50 of profit.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $50 (10 ticks x $5)
• You currently have locked in $50 of profit. The Profit trigger in 'Step 3' indicates that when you have an additional $200 of profit (40 ticks x $5), the Stop Loss will then trail your position by $50 (10 ticks x $5). Prices move up by $200. So at this point, you've locked in $200 of profit ($50 of profit locked in + $200 move and $50 Stop.
• The Frequency dictates that the trailing Stop Loss will be moved each time prices move up by $100 (20 ticks x $5)
• You currently have $200 of profit locked in with your Stop strategy. Prices move up by $100, so at this time you've locked in $250 of profit with your $50 trailing Stop. Prices then move up by another $100 giving you $350 of profit, so now you've locked in $300 of profit. Prices then move up by another $100 giving you $400 of profit, so now you've locked in $350 of profit. And this continues until you get stopped out, or the market closes.
A screenshot is attached.
Would this strategy work, or have I set it up incorrectly?
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