Trailing Stop

Have you ever been annoyed by Take Profit you are a bit more touched, but the price behind the trigger to touch Stop Loss?

When the position is profit / floating profit but still not touched the level of take profit then there are 2 possibilities that you will experience.

The first, TakeProfit you are touched and the final result Profit.

Secondly, your position back again becomes a floating loss because of the price behind the direction. Worse yet, continuing on the StopLoss was touched. Of course the result is a loss.

With Trailing Stop feature, you will not worry anymore about it. Because Trailing Stop serves to lock your Profit.

How it works, trailing stop will make your stoploss keep moving up close to current price at certain pips distance if mounted in BUY position. And trailing stop will make stoploss continue to move down if installed in the position SELL.

So if a trailing stop is installed even if the stoploss is touched, the result remains a profit because the stoploss has moved past the opening price of the position.

For example, you open Buy EUR / USD position at 1.2500 with Takeprofit at 1.2550. Then you install the trailing stop. So when your buy position is profit, automatic Stop Loss will change itself along with rising price of EUR / USD.

So, for example the price has reached 1.2548 (a little more touched take profit) but then back down again, then the price will be intercepted by the trailed Stop Loss. So even though Stoploss is touched the results remain profitable because the stoploss value is higher than the opening price of Buy positions.

In the Trailing Stop function there are levels of pips that traders can choose to determine how many pips trailing stop works. In Metatrader which is 4 Digit, minimum 15pips. While in Metatrader 5 Digit, at least equal to spread.

How to Install Trailing Stop in Metatrader?

Here's an example of how to install trailing stop in 4-digit metatrader.

Please right-click your current order / position. Then select the trailing stop, then specify the pips distance. Look at the picture below:

put trailing stop

In the picture above, profit / profit buy position is 12pips. So when the profit has reached 15pips, trailing stop function will work immediately, that is changing Stop Loss at least equal to the price of Open Position is 1.2131

Stop Loss will continue to rise, along with rising prices. Suppose the profit has reached 20pips, then the automatic stop loss will rise from 1.2131 to 1.2136. And so on. Until the price touches your TakeProfit.

If any is apes (takeprofit untouched then the price back again) then the price will be blocked by the Stop Loss who have been in the trailing. So you do not have to worry, because even though your Stop Loss touched the final result is still Profit.
Below is an example Trailing Stop that is working

trailingstop

In essence trailing stop is how to change stoploss automatically close to current price so that when stoploss it untouchable sail trading remain profit because stoploss have passed the price of opening position.

That's the explanation of the trailing stop, please use trailing stop to avoid a reversal that can cause losses.