STRobot gets a fib based trailing stop and why some brokers do better than others.

So I test strobot on a few brokers. There are some noticeable differences in the trades taken between some and others. Here are some (but not all) reasons.

– Spikes in data – I noticed CeaserTrade tends to have the odd spike that will nip down and take an entry order, then go straight back to where it was before – these spikes do not appear on other brokers.
– Spread – STRobot only enters trades where the spread < 7 pips, thus, as spread is varying all the time a broker who ramps up spread to 7 pips or above even just for a moment to stop out traders (or for whatever reason they do it), can mean that STRobot may not take trades on a particular broker.

So now on to something far more interesting. STRobot’s Fib based trailing stop. I’ve always really wanted to produce a trailing stop that would move closer to price as the price got closer to the target, I’ve FINALLY achieved this. Using a FIB based calculation (yup, my secret), STRobot calculates what would be a good trailing stop, he then follows the price towards the target but gets gently closer as the price gets closer, finally getting REALLY close when the price is within say 20 pips of the target. This means that on occasions where the price bounces before the target we just stop out in profit.

This graphic is an image that shows you a model of the trailing stop, you can see as price moves up the trailing stop moves closer – not by much in this instance, so for a bigger target the robot gives the trade more space and for a smaller target less.

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