say have a long entry & market goes down 0.60% and then goes up again +1%
If trading without or with a big stoploss you have a win and never see the loss (look at the backtest report at the mae colum, where it shows how much the position was turned against you)
If you were exited on stoploss 0.5% you have a loss, but if quickly a new long signal appears you likely also have a new win.
(you don’t see or act on that new signal with a big stoplosss! That’s why good optimisation parameters are often “unreliable”)
So a code with a smaller stoploss (and/or ts/ pt ) creates more trades but spread takes quickly away profits on a small timeframe.
Trailingstop is a bit tricky. Too tight and you miss out on a bigger rally. Too big and the market has less range at that time, you could end up with loss instead of a (smaller) win.
Not easy to find a nice balance!
