I have query about trailing stop loss. I bought a share at Rs501 and kept stop loss at 496 and target 505 and trailing stop loss(TSL) Rs 1. Risk reward is 1:1 ratio. stop loss is hitting continuously in day trading. price reached 503 from 501 and then price reverses which leads to stop loss hit. Any one can please suggest how to set target and stoploss and TSL?
Regards,
Vigneshvp
Your TSL is of 1 for stock priced at 500, obviously your SL will be hit frequently. Given you RR of 1:1, your TSL should at least be of same amount as you are risking on your trade.
PS: TSL is optional, it’s not mandatory to fill TSL value if you want to take BO order, you can keep it blank and manually update you SL as price moves in your favour from orders tab.
TSL works both ways , 1% up / down it gets hit, better avoid it ,
By using ATR of a particular stock/Index TSL can be fine tuned.