Hi Sulaiman,
The other side of your argument goes like this: Suppose price moved to half of the take profit target, reversed back in a downward direction, hit the trailing stop for a profit, and then price moved back upward and continued on to surpass the original take profit price. What happened in this hypothetical example is that the trader would have received half the profit instead of the full profit. This hypothetical example can happen in reality because all EA’s will go through drawdowns, and if the trailing stop is set too tight then the positions would be closed during a drawdown instead of allowing price to complete the drawdown and then continue in the profitable direction and hit the price target. If the trailing stop is set too loose so as to not close out a position during a drawdown then perhaps the trailing stop is of no value. When the EA’s are created the take profit and stop loss price points are determined to allow for the optimum profit and minimum losses based upon the historical data. As a result, statistically, over the long term, it is more profitable to allow trades to complete their drawdowns and continue on to hit their profit targets while occasionally taking a loss.
Alan,