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> And the same thing is true for trailing stops you code yourself.
I wasn't thinking straight when I said this. There *IS* a big
difference between TS built-in stops and hand-coded stops: TS can
apply the stops **in the current bar**, thus running into the "exit
on same bar as the max high value" problem. But hand-coded stops can
only apply to the NEXT bar, so you can't exit in the same bar as the
high.
In fact hand-coded stops will tend to be conservative. Let's say bar
1 sets a new high, and you set a trailing stop based on that. Then
bar 2 sets a higher high, AND also goes below bar 1's trailing stop.
Depending on the bouncing tick setting, I believe TS might assume the
new high came first, and set (and exit on) a higher trailing stop
based on it, but I'm not 100% sure on that point. But the hand-coded
stop would be hit by bar 2 before you had a chance to compute a new
higher trailing stop.
So in that respect, hand-coded stops are probably safer than built-in
stops.
But I think my comment that "built-in trailing stops are safe if they
don't exit on the same bar as the new high" is still correct.
But hell, what do I know, it's Friday afternoon... :-)
Gary
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