Is Trailing-Stop like trading with Moving Averages ?

[ionone]

I think that exiting a trade using a Trailing-Stop would be like using a moving average to exit your trades, because the Ts moves the SL as the price goes up (or down) but closes the trade only after the price retraces.
And the higher the Ts, the higher the retracement (but the profit also) :
This is exactly how a moving average works : the MA curve reverses only when price has moved in the opposite direction for some time.
And we all know that using a moving average for entries (or exits) isn't profitable.

So my question is : are trailing-stop exits a bad idea? Are they the culprit in finding a strategy that is not working?

thanks

Jeff

 

[themickey]

I think that exiting a trade using a Trailing-Stop would be like using a moving average to exit your trades, because the Ts moves the SL as the price goes up (or down) but closes the trade only after the price retraces.
And the higher the Ts, the higher the retracement (but the profit also) :
This is exactly how a moving average works : the MA curve reverses only when price has moved in the opposite direction for some time.
And we all know that using a moving average for entries (or exits) isn't profitable.

So my question is : are trailing-stop exits a bad idea? Are they the culprit in finding a strategy that is not working?

thanks

Jeff

There's a stop system called 'Parabolic SAR' or parabolic stop and return which works in this fashion.
https://www.investopedia.com/trading/introduction-to-parabolic-sar/

I'm not that keen on PSAR, my testing indicated it takes one out of a trade too frequently prematurely.
It may work ok daytrading?
However canned type indicators imo mostly don't work due to too many traders using/exploiting when they become common knowledge.

 

[SanMiguel]

And we all know that using a moving average for entries (or exits) isn't profitable.

Oversimplification.
It can be very profitable if used in conjunction with other indicators, market sentiment, etc.

 

[Turveyd]

There's a stop system called 'Parabolic SAR' or parabolic stop and return which works in this fashion.
https://www.investopedia.com/trading/introduction-to-parabolic-sar/

I'm not that keen on PSAR, my testing indicated it takes one out of a trade too frequently prematurely.
It may work ok daytrading?
However canned type indicators imo mostly don't work due to too many traders using/exploiting when they become common knowledge.

PSAR looks good after the event, sadly Live it's not ideal, keep trying it but rejecting it.

It'll work with really strong markets, but weak times / markets chop chop chop.

Sadly, I find things that work for weeks at times then just fail and suicide.

Never Easy!!! See how long my new slower plan remains revelant.

 

[murray t turtle]

I think that exiting a trade using a Trailing-Stop would be like using a moving average to exit your trades, because the Ts moves the SL as the price goes up (or down) but closes the trade only after the price retraces.
And the higher the Ts, the higher the retracement (but the profit also) :
This is exactly how a moving average works : the MA curve reverses only when price has moved in the opposite direction for some time.
And we all know that using a moving average for entries (or exits) isn't profitable.

So my question is : are trailing-stop exits a bad idea? Are they the culprit in finding a strategy that is not working?

thanks

Jeff

%%
Partly true,iowenone;
but only if one uses a ma in a wooden/non discretionary way.
Ever tried using them with discretion??
For example,every now + then a good trending ETF gets so far ABOVE MOVING AVERAGE, its almost off 52 week chart...…………………………………………………………………………………………………….SURE NOT an auto sell , but may, or may not want to tighten stops.
Actually, due to the way a very good trend works;
some + I, like both profit targets/trailing stop...……………………………………………..Actually that's a good thing ===some hate ma.

 

[Tradex]

And we all know that using a moving average for entries (or exits) isn't profitable.

??

Who told you that?

 

[Turveyd]

??

Who told you that?

using them, with no thinking if good or bad trade like a robot with the standard method of trading, then he's right.

 

[ionone]

??

Who told you that?

because i've tried every Moving Average combination possible and even adaptive ones, and none are working
i'm not talking about using MAs in your strategy with other tools, but using pure MAs for entries and exits (if ma0 > ma1 && ma1 < ma2) then buy
this kind of strategy.
it doesn't work
and a trailing stop is exactly like using a MA this way for exits

Jeff

 

[Turveyd]

because i've tried every Moving Average combination possible and even adaptive ones, and none are working
i'm not talking about using MAs in your strategy with other tools, but using pure MAs for entries and exits (if ma0 > ma1 && ma1 < ma2) then buy
this kind of strategy.
it doesn't work
and a trailing stop is exactly like using a MA this way for exits

Jeff

Mechanically no it won't work, that's why you need a method MA based say then you need to work out what times / conditions it will work and only take those trades, not all trades.

 

[murray t turtle]

because i've tried every Moving Average combination possible and even adaptive ones, and none are working
i'm not talking about using MAs in your strategy with other tools, but using pure MAs for entries and exits (if ma0 > ma1 && ma1 < ma2) then buy
this kind of strategy.
it doesn't work
and a trailing stop is exactly like using a MA this way for exits

Jeff

%%
IF only the markets were that simple;
all could be millionaires, easy. And a psar[parabolic stop+ reverse or parabolic time price] is a lot like a ma...……………………………………………………………………………………………………………… [Actually the fact that you dont like a ma is a good thing; interstate hiway works well-- but can get to crowded]