Trailing Stops

Once you have determined trend, entered a market and placed your initial protective stop, you must decide where to take a profit. Reliable trailing stops can make the difference between big profits and small profits. All too often we nervously grab a small profit on the first reaction only to see the market take off once we are stopped out. The ProfitTrader™ trailing stops are designed to follow prices as closely or as far away as your trading temperament dictates. They provide the flexibility to follow prices into a trading cycle reversal with a tight stop to minimize profit give back, or to give a market room to let profits run in the really big moves.

The ProfitTrader™ Short-term Trail Stop Indicator is a fast moving mathematical stop to lock in a quick profit, often as a trading cycle reverses. The Long-term Trail gives a market more room for price fluctuation to trail the bigger moves. Using these stops eliminates the need to wait for a trading signal in the opposite direction, or the constant re-evaluation of mental trailing stops.

ProfitTrader™ Trailing Stops lock in profits from cycle tops and bottoms in all time frames, in all markets.


Multi-Bar Trailing Stop and Entry
The Multi-bar reversal was initially designed as a trailing stop, but can also be used as an entry signal, or confirmation of a mechanical entry signal. Used with the HAL OB/OS Bands or at extremes of the Double Stochastic oscillator, the default 2-bar will stop out of an existing position close to a cycle bottom or top. It can also be used as a stand alone entry signal or as confirmation of a mechanical Double Stochastic, BLine or OB/OS trading signal.

The trailing stop prices for the current price bar show as colored dots that follow the market up and down during real-time trading. They can be turned off to show only the entries generated by the actual reversals.

The most significant Multi-bar reversals occur within the HAL OB/OS Bands, and at extremes of the Double Stoc oscillator.

When used to enter a trade at cycle tops and bottoms, a protective stop goes above the cycle top for trades on the short side; below the cycle low for trades to the long side.
Walter has used 2-bar reversals in his trading for years as trailing stops in different markets and time frames. You may find a 3 or 4-bar, or longer, reversal to be more suited to your trading style.
The Multi-bar Trailing Stop and Entry plots as dots on the price bars. The cyan dots are the stop out prices in a rising market; the purple dots, the stop out prices in a declining market. The larger green dots show a sell reversal; the red dots, a buy reversal.


Dynamic Short-Term (ST) Trailing Stop
This stop is designed to stop out a position following a trading cycle top or bottom. When entering a market the initial protective stop should be placed below the trading cycle bottom if long, or above the trading cycle top if short. Once a market starts moving away from entry, the Short-Term Trailing Stop follows prices closely until the trading cycle reverses, often accelerating to stop the trade out near the extreme of the reversal.

Dynamic Long-Term (LT) Trailing Stop
Designed to let prices back and fill, this slower trailing stop will follow a market for the bigger moves, often stopping out at the second trading cycle top/bottom, or simply trailing a market until the move is over

The Dynamic Long-term Trailing Stop defaults to a green line following prices up or down.