FX Dictionary: TRAILING STOPS

[nicky2k]

Another question from newbie, can someone explain what are "Trailing Stops" and how they can be used to our advantage?

I am just trying to learn as much as possible about FX "slang" and what it all means, so please bare with my stupidity...

[moneydeep]

I don't know if this is what you're looking for but I found this defenition. It might help.

A trailing stop is a feature of many trading applications which helps you lock in profits. The software will watch each of your positions. Each time one of your long positions goes up, the software adjusts your stop loss. If the prices moves back down a predetermined amount, you will hit the stop loss, and the software will automatically sell your stock. The software constantly compares the current price of each of your long positions the highest price since you owned the stock. Short positions work the same way, but the direction is reversed.

[moneydeep]

Hey by the way add Fxegypt manager to your skype.
He is always ready to help. and its easier to get many questions answered simultaniously.

His id is fxegypt.com

[FXOjafar]

If you want to set a trailing stop in MT4 it's easy. Right click an open or pending position, and choose your trailing stop level from the menu.

How it works..

Say you choose a trailing stop of 15 pips, when the position hits +15, your stop loss will automatically move to break even. If the price continues to move your way, the trailing stop will "trail" the stop loss so if for example your position is at +20 pips, the trailing stop of 15 pips will have your stop loss automatically set at +5 pips.

[moneydeep]

If you want to set a trailing stop in MT4 it's easy. Right click an open or pending position, and choose your trailing stop level from the menu.

How it works..

Say you choose a trailing stop of 15 pips, when the position hits +15, your stop loss will automatically move to break even. If the price continues to move your way, the trailing stop will "trail" the stop loss so if for example your position is at +20 pips, the trailing stop of 15 pips will have your stop loss automatically set at +5 pips.

Yes thanx I understand that. Just one question does that mean that when the position drops again from +20 pips the stop loss will drop also or will it stay at +5 ? If it drops also then its no good.

[nicky2k]

If you want to set a trailing stop in MT4 it's easy. Right click an open or pending position, and choose your trailing stop level from the menu.

How it works..

Say you choose a trailing stop of 15 pips, when the position hits +15, your stop loss will automatically move to break even. If the price continues to move your way, the trailing stop will "trail" the stop loss so if for example your position is at +20 pips, the trailing stop of 15 pips will have your stop loss automatically set at +5 pips.

Ok, thanks for explanation, I just would like to know if the trailing stop will happen even if I have my MT4 closed? Or I have to have the program open?

Who monitors the trailing stop, my MT4 Client or FXegypt server?

Thanks in advance

[FXOjafar]

Yes thanx I understand that. Just one question does that mean that when the position drops again from +20 pips the stop loss will drop also or will it stay at +5 ? If it drops also then its no good.

The stop loss is there to lock in profit so the stop loss would stay at +5. Stop loss comes in very useful when riding a trend. For example, when the carry trade has another collapse, you could ride g/j dozn with a 120 pip trailing stop and still pick up 1000 or more pips. I did that on the last 2000 pip drop and scored 1200.

Ok, thanks for explanation, I just would like to know if the trailing stop will happen even if I have my MT4 closed? Or I have to have the program open?

Who monitors the trailing stop, my MT4 Client or FXegypt server?

Thanks in advance

The trailing stop is set by the MT4 software. It's like if you manually modified the stop loss yourself except the trailing stop does it for you. If you disconnect, the stop loss will be registered on FX Egypt's servers from where you left it, however it will not be adjusted by the trailing stop any more.

[nicky2k]

The trailing stop is set by the MT4 software. It's like if you manually modified the stop loss yourself except the trailing stop does it for you. If you disconnect, the stop loss will be registered on FX Egypt's servers from where you left it, however it will not be adjusted by the trailing stop any more.

Thank you very much, it's good to know what things are managed by software, and what are managed by client program...

Now I know, if I want the trailing stop, then I should leave the MT4 running...

Thank you again!

[fxlamer]

I know that this thread is old, and nobody posted here for a while, but I don't seem to find the trailing stop option in the new version of MT4, the older one had it, but the new one is not there, maybe it's hidden somewhere?

[mahanidhi]

Fx REbate says its back on but I still cant seem to find it.

maybe I have to redownload the newer newer metatrader?

[FXOjafar]

Fx REbate says its back on but I still cant seem to find it.

maybe I have to redownload the newer newer metatrader?

Answered in another thread. It's there in live, not yet in demo.

[mahanidhi]

Ok thanks for that.
I am using demo... forgot to mention that.

[MAXpips]

Trailing stop is good option. I like it.
My previous broker didnt have the option.
Nor did it have option for pending orders.

[dollar_earner]

ahhh... why is it that trailing stop will not run if i will shup off my mt4? i thought it is just like stop loss that will keep in there even if i will shut off my mt4/PC..

[FXOjafar]

ahhh... why is it that trailing stop will not run if i will shup off my mt4? i thought it is just like stop loss that will keep in there even if i will shut off my mt4/PC..

The last stop it set will be registered and honoured on the trading server, It just won't trail anymore if you log off.