Trailing stops on lower timeframes: how do you filter out the noise?
I’ve been trying to automate my exits on the 5m and 1m charts, but I keep running into the same issue. Whenever I set a tight trailing stop, I get wicked out by random market noise right before the actual move happens. I am currently running my scripts through goldmanncolimited for execution, and while sending the automated order adjustments to the server is seamless, my actual exit logic is flawed.
Do you guys trail based on previous swing lows, or do you use an ATR multiplier to give the trade enough room to breathe? I want to completely remove human emotion from my exits but I am struggling to find the right mechanical filter to code into my setup.
Why don't you try any algo bot or Expert Advisor? I have heard about some EA, such as Prime Scalper EA, SureShotFX Algo EA, Forex Fury EA, Forex Diamond EA.SOme of these are customizable. GIve it a try to make your strategies free of emotion.
I’d probably use an ATR-based filter rather than a fixed trailing distance. On 1m/5m charts, I usually give the trade more room during volatile periods and tighten it when volatility drops. I’d also avoid moving the stop until price has made a meaningful swing, which helps reduce random stop-outs.
