Is Trailing Stop really useful to manage Scalping opened positions?
If the move is often smaller than 20 pips the answer is NO.
See the picture above. It represents a test with two Trailing Stop types: normal trailing and step trailing.
With a normal Trailing Stop we start changing the stop loss as soon as the price moves on the expected direction. This reduces the "space" the price has to move down.With step Trailing Stop we change the stop loss value when the step value is reached.
In this example the initial SL is 10, the step is 5 and spread is 3 (initial loss).
The result is:
With normal Trailing Stop we need move 10 pips to reach BE in case of direction changes.
With step Trailing Stop we need move 19 pips tu assure break even.
PS: Assure BE means to have a SL value at initial price +spread.
If we have small amplitude movements Trailing Stop may reduce gains instead of help us to get more pips.
