Ask Colin

What trailing stop do you use for your value model?

I use the same stops whether I am trading the value model or the growth model.

There are two types of stops that I use. There is the "stop-loss" and the "protect profit stop", which is what you are calling a trailing stop.

I place my protect profit stops under the last significant trough in the trend. These are natural support levels.

For a very fast moving market, I use any of the short term reversal signals or I use the Parabolic SAR indicator in the absence of support levels forming on the chart. I have described this use of Parabolic SAR in an article in Shares magazine, which is on my subscription web site.

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