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Backtesting a trailing stop


SteveM2025

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Hello, relative newbie here. Does anyone know if there is some kind of tool to backtest a trailing stop. So if I drew a line on a chart from a recent low to a recent high, I'd like to know the optimal trailing stop distance to ensure my order is closed as close to the high as possible, without getting stopped out at a lower price because of a pull back. Hope that makes sense, I can check this manually of course but it would be so much quicker if there was some kind of pointer tool. I dont think it exists but Im just double checking. Thanks!

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6 hours ago, SteveM2025 said:

Hello, relative newbie here. Does anyone know if there is some kind of tool to backtest a trailing stop. So if I drew a line on a chart from a recent low to a recent high, I'd like to know the optimal trailing stop distance to ensure my order is closed as close to the high as possible, without getting stopped out at a lower price because of a pull back. Hope that makes sense, I can check this manually of course but it would be so much quicker if there was some kind of pointer tool. I dont think it exists but Im just double checking. Thanks!

Hi, there is no tool on the platform so really just an eyeball estimate. There are simulators on the market that use historical data if you were really keen.

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'Eyeballing' is a questionable method, certainly doesn't qualify as scientific.  Unless you can 'replay' the price movement and not have all the subsequent price action in front of you, in which case you are 'backtesting with the benefit of hindsight'.

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