Can anyone give me idea about trailing stops ?

<p id="isPasted">The effectiveness of stop-loss can be enhanced by pairing it with a trailing stop, which is a trade order where the stop-loss price isn't set at an absolute amount, but rather at a percentage or dollar amount below the market price.&nbsp;</p><p>This is how it works. As the price increases, the trailing stop follows. When the price stops rising, the new stop-loss price remains at the level it was dragged to, thereby protecting an investor's downside while locking in profits as the price reaches new highs. It is possible to use trailing stops on stock, options, and futures exchanges that support traditional stop-loss orders.</p>

<p id="isPasted">Trailing stop losses are used to manage risk. Using a defined number of pips, it will follow the price as it moves in your intended direction and will be triggered if the price reverses the set number of pips.&nbsp;</p><p>As an example. With a trailing stop loss order of 50 pips, you enter a long position on GBPJPY at 142.000. As a result, it is initially set at 141.500.</p><p>As the price climbs 80 pips to 142.800, your trailing stop loss will move up 80 pips to 142.300.&nbsp;</p><p>After the price reverses 50 pips to 142.300, the trailing stop loss order will be triggered, and you will be taken out of your long position trade.&nbsp;</p><p>The trailing stop loss will always move in the direction of your original trade.</p>

<p id="isPasted">Trailing stops on mt4 get set on the platform side…not the brokers' server! This means that if you activate a trailing stop, it will only work when your mt4 platform is open and connected to the Internet. It needs the Internet so that the platform can identify where the price is and if the adjustment of the stop-loss is needed. Then only it sends the info through to the brokers' server to do the adjustment.</p><p>Because of this, I prefer manually ratcheting my stops. It keeps me in control. We can set things up according to my rules.</p><p>Trailing stops also only activate on mt4 once your trade is in profit by the number of points you have set it to. So, in other words, it only kicks in from your entry point. This is why you should always use a hard stop first and then activate a trailing stop because your trailing stop might never actually get triggered. I've seen many people lose a lot of money because they don't understand how this feature actually works.</p><p>The best way to find out the appropriate level for your stops and the way to manage them is dependent on the tour system and backtesting.</p>

<p>A trailing stop is a type of stock order that adjusts the stop-loss price of a position as the price moves in a favorable direction. The idea behind a trailing stop is to lock in profits as a stock price rises and to limit potential losses if the price falls. The stop-loss price trails the market price by a specified percentage or dollar amount. When the market price moves in the favorable direction, the stop-loss price also rises, but if the market price begins to fall, the stop-loss price remains at the most recent level, potentially limiting losses on the position.</p>

<p id="isPasted">A trailing stop loss is a type of stop loss order used for risk management. It is set using a defined number of pips and it will then follow the price as it moves in your intended direction and will be triggered if the price reverses the set number of pips and triggers the stop loss order.</p><p>Example.</p><p>You enter a long position on GBPJPY at 142.000 with a trailing stop loss order of 50 pips. This means it is initially set at 141.500</p><p>If the price climbs 80 pips to 142.800, your trailing stop loss will move up 80 pips to 142.300.</p><p>If the price then reverses 50 pips to 142.300, the trailing stop loss order will be triggered and take you out of your long position trade for 30 pips profit.</p><p>A trailing stop loss will only ever move in the direction of your original trade position.</p>