Hi,
I have been backtesting using trailing stop loss feature. Below is the scenario
Stop Loss - type = percentage and value = 3
Trail SL - type = percentage and X = 3, Y = 9 (ie input1 = 3 and input2 = 9)
According to documentation, once price moves 3% in my direction, stop loss will be moved by 9% in same direction.
But my initial stop loss is 3% from entry price only. What does this scenario mean,
- Is it valid - Trail SL is moved to entryPrice + 6% in this case, and price is yet to be reached. ie trailing stop loss is higher than current price. Thus stop is trailed tick by tick.
- It is invalid - AlgoTest should have prompted with error message that Y can not be greater than SL + X
Please provide your opinion.