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  1. #1
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    Trailing stop loss and its use

    Introduction A trailing stop loss is a stop loss that automatically moves and adjust itself to maintain our profits and also manage our losses. For instance if you make a buy trade in eurusd at 1.1200 and set a trailing stop at 50 pips. Suppose the price of eurusd moves from 1.1200 to 1.1300 then the trailing stop automatically moves from 1.1150 to 1.1250. In this case it should be noted that the trailing stop loss will not change if the price falls.

    Use of trailing stop loss A trailing stop loss can be best used when te trader wants to lock his profits as the price moves in his favor. It is mostly used by position traders and swing traders trying to trap breakouts and volatile movements in prices.

    How to set trailing stop loss Placing a trailing stop for any order is easy. Just right click on the order row on the trading tab of the mt4 terminal. Then you can select the number of pips you want to set the trailing stop for from the dropdown list

    Please note trailing stop works only till the terminal is run. Once the terminal is closed it gets fixed at its last price before closing the terminal.

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  2. #21
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    Quote Originally Posted by shivanandfx View Post
    Both trailing stop loss and a normal stop loss will benefit only when the trader knows how and when to use them. Otherwise they will start giving unnecessary losses. Trailing stop are better off with position traders that are makes hundreds of pips per trade, not a day trader hunting for very little pip movement.
    both of them are very important and even now i think that i prefer to use trailing stop loss than stop loss itself, with take the same risk then we can follow the orders and lock the profit and do not loss them because the price move back and against us, so what do you think about it friend ?

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  3. #22
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    Quote Originally Posted by newentry View Post
    both of them are very important and even now i think that i prefer to use trailing stop loss than stop loss itself, with take the same risk then we can follow the orders and lock the profit and do not loss them because the price move back and against us, so what do you think about it friend ?
    The both are almost the same thing, but the trailing stop is temporary one, while the stop loss is permanent. Forex traders need the stop loss more than the trailing stop because the trailing stop might still disappoint trader when the market is moving in a funny way. Forex trading is really about good planning though.

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  4. #23
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    Quote Originally Posted by newentry View Post
    it is the way to lock profit when the order run in floating positive and it means, traders can save their profit if the market move back against them, but traders need to set for how many pips will run behind the market price and try to set it with good then it can not touched by the price so the trailing stop loss will always follow it with properly, for them who use long term system may use it
    Yeah made long term trading is good to use trailing stop, for example if my trades are giving me 200 pips profit for now then I can use trailing stop like 70 to 80 pips something like that, But I had never use trailing stop till now. I lock my trade by using stop loss in my trading. Using trailing stop required computer running all the time so stop loss use is much better

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  5. #24
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    Quote Originally Posted by Hukam View Post
    Yeah made long term trading is good to use trailing stop, for example if my trades are giving me 200 pips profit for now then I can use trailing stop like 70 to 80 pips something like that, But I had never use trailing stop till now. I lock my trade by using stop loss in my trading. Using trailing stop required computer running all the time so stop loss use is much better
    yes, this is good alternative to lock our profit, we can move our stop loss manually to follow the orders and also use trailing stop loss too, and for both of them there are advantages and disadvantages that we have to take, and i guess we have already understood for this,

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    Quote Originally Posted by cozard007 View Post
    The both are almost the same thing, but the trailing stop is temporary one, while the stop loss is permanent. Forex traders need the stop loss more than the trailing stop because the trailing stop might still disappoint trader when the market is moving in a funny way. Forex trading is really about good planning though.
    [lang=id]i guess, if we set it the risk is as same as with stop loss, there is no problem because it is the consequences that we have to take, and trailing stop loss will follow the order with the static number behind the order, and when it runs at good floating positive, so TSL will lock some profit and if there is a funny movement so we do not need to worry about it[/lang]

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  7. #26
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    Quote Originally Posted by samprazaan View Post
    [lang=id]i guess, if we set it the risk is as same as with stop loss, there is no problem because it is the consequences that we have to take, and trailing stop loss will follow the order with the static number behind the order, and when it runs at good floating positive, so TSL will lock some profit and if there is a funny movement so we do not need to worry about it[/lang]
    Part of a good risk control is to lock our profits or move to break even when it acquire considerable profits, we all know that the market is very dynamic and can be very volatile most of the time so we need to integrate good ways to lock profits in our trades so that we can protect our account from getting a loss from an already profitable trade.

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  8. #27
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    Quote Originally Posted by newentry View Post
    yes, this is good alternative to lock our profit, we can move our stop loss manually to follow the orders and also use trailing stop loss too, and for both of them there are advantages and disadvantages that we have to take, and i guess we have already understood for this,
    trailing stop work in the chart that is always online, I am not always in front of the computer, and I do not always online. so I chose to use a stop loss and take profit. You can shift the stop loss to a positive direction, but do not shift the stop loss becomes larger. You must have a commitment to limit the risk

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  9. #28
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    Quote Originally Posted by ngalapreceh View Post
    trailing stop work in the chart that is always online, I am not always in front of the computer, and I do not always online. so I chose to use a stop loss and take profit. You can shift the stop loss to a positive direction, but do not shift the stop loss becomes larger. You must have a commitment to limit the risk
    yes friend, to use trailing stop loss so the computer need to run for longer because it works online, and it was discussed with hukam and the others too, but maybe for them who use VPS can do it, but we do not need to push ourselves for this thing, it is about the choice, and just take one of them that is easy to use

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  10. #29
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    I can remember the first time I used trailing stop loss about 3 years ago in the meta trader 4 terminal. I never tried to use it on roboforex MT4. So far I think it is very good for strongly trendy market and for long term investor. If it keep oscillating in a range of 50-100 pips then it won't give you very good result. And I suggest to set the SL value from present price is about 400 pips for long term, 200 pips for swing trader, 100 pip for day traders and 20 pips for scalpers.

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  11. #30
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    Quote Originally Posted by nkhan2810 View Post
    I can remember the first time I used trailing stop loss about 3 years ago in the meta trader 4 terminal. I never tried to use it on roboforex MT4. So far I think it is very good for strongly trendy market and for long term investor. If it keep oscillating in a range of 50-100 pips then it won't give you very good result. And I suggest to set the SL value from present price is about 400 pips for long term, 200 pips for swing trader, 100 pip for day traders and 20 pips for scalpers.
    Trailing stop helps traders to minimize loses and maximize profits, but we must also be careful on setting the right level because it can also kill our trade prematurely thereby missing some of the profits on the table.In regards to your suggested stop loss level I think its a little too high for me, but then again its a matter of choice if your psychology can stand to lose such big stop loss then you can do it.

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