Why Use MTF For Trailing Stops In Prorealtime?
The calculation of a new trailing stop occurs at the end of the bar leaving systems with entry signals that use higher time frames at a disadvantage when using trailing stops as they are less reactive. Using the Multiple Time Frame feature of Prorealtime allows for the entry signal to be generated on a higher time frame but the trailing stop to move using a lower more responsive time frame
An Example Of Using Multiple Time Frames For Trailing Stops In Prorealtime
In this example a system with a signal based on the hourly time frame is managed with a stop on the 30 minute time frame. For the Bar Hunter system this resulted in around a 50% lower draw down and 20% more profit on back test