Can anyone give me idea about trailing stops ?

Question

David · Accepted Answer

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. 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.

Kenneth · Answer

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. 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.As the price climbs 80 pips to 142.800, your trailing stop loss will move up 80 pips to 142.300. 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. The trailing stop loss will always move in the direction of your original trade.

Charles · Answer

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.Because of this, I prefer manually ratcheting my stops. It keeps me in control. We can set things up according to my rules.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.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.

Can anyone give me idea about trailing stops ?

6 Answer

6 Answer

Can anyone give me idea about trailing stops ?

6 Answer

6 Answer

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