Hello, I am free software developer of a free stock market software http://jstock.sourceforge.net
I am new to trailing stop feature. Here are some of the question I would like to ask about.
Say, we implement this trailing stop feature in JStock standalone application. Standalone application means this application is only running in your computer, and user may shut down it, or start it any time.
(1) I buy a stock at $1.00
I set the trailing stop to 10%
At the end day, the last price is still $1.00.
Hence, my stop price is $1.00 x 90% = $0.90
(2) 2nd day, stock price goes up non-stop to $2.00
The stop price will upgraded to $2.00 x 90% = $1.80
Later, price drop to $1.80
Sell signal generated, with profit gain $1.80 - $1.00 = $0.80
But, let say that day user do not open JStock, he will lose all these information.
(3) 3rd day, user open up JStock. That time, price is $1.50.
Hence, stop price is upgraded from 1st day $0.90 to $1.35
Price later drop to $1.35, user will sell it and profit gain is $1.35 - $1.00 = $0.35
As you can see, instead of generating profit $0.80, user generates $0.35, just because he does not switch on JStock all day.
So, does this trailing stop feature still make sense to implement in JStock? Or it is only suitable for all days running web based system?
I am new to trailing stop feature. Here are some of the question I would like to ask about.
Say, we implement this trailing stop feature in JStock standalone application. Standalone application means this application is only running in your computer, and user may shut down it, or start it any time.
(1) I buy a stock at $1.00
I set the trailing stop to 10%
At the end day, the last price is still $1.00.
Hence, my stop price is $1.00 x 90% = $0.90
(2) 2nd day, stock price goes up non-stop to $2.00
The stop price will upgraded to $2.00 x 90% = $1.80
Later, price drop to $1.80
Sell signal generated, with profit gain $1.80 - $1.00 = $0.80
But, let say that day user do not open JStock, he will lose all these information.
(3) 3rd day, user open up JStock. That time, price is $1.50.
Hence, stop price is upgraded from 1st day $0.90 to $1.35
Price later drop to $1.35, user will sell it and profit gain is $1.35 - $1.00 = $0.35
As you can see, instead of generating profit $0.80, user generates $0.35, just because he does not switch on JStock all day.
So, does this trailing stop feature still make sense to implement in JStock? Or it is only suitable for all days running web based system?
