Impact of Slippage on Trailing Stop Loss Strategies
Slippage, the difference between an order's intended execution price and its actual executed price, can significantly impact the effectiveness of trailing stop loss strategies.
Types of Slippage:
Market Slippage: Occurs when the market moves rapidly against an order, causing it to execute at a less favorable price.
Broker Slippage: Occurs due to brokerage fees and spreads, which widen the gap between the quoted price and the executed price.
Effects on Trailing Stop Loss Strategies:
Delayed Executions: Slippage can result in tra....
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