Volatility-Based Trailing Stop (Chandelier Trailing Stop)
This video tutorial shows how to base your trailing stop on the volatility of the last few bars. The volatility here is determined as the difference between High and Low of the bars. The stops of your positions widen when the volatility increases and tighten when it goes down, allowing for a more accurate trading in all market conditions. This method of setting the trailing stop is also called Chandelier trailing stop.
