Explaining the Trailing Stop Limit and a Better Alternative


To create the trailing amount, place a sell order and then choose “trail” under order type. Trailing Stops are executed on the platform directly, from the Chart or the Terminal window, and not on the server like the Stop Loss and Take Profit. To disable Trailing Stop, set the “None” parameter in the control menu. In order to disable Trailing Stops from all the positions, set the “Delete All” parameter from the menu of any order. This example is shown for illustrative purposes only.

For example, if the https://www.beaxy.com/ price of a company is at $50, it can jump to $60 in a single session if there is a major news. A stock split happens when a company whose share price is very high decides to split it. Am blessed to have you as my mentor after so many years of trading blindly and losing always am glad to say my trading it’s 70% win. Thanks for article which I enjoyed because it was – among other things – easy to read and simple to understand and provided a good choice of methods with directions on how to use. There’s no best trailing stop strategy, nor is there a best stop loss strategy.

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1) Please direct all advice requests and beginner questions to the stickied daily threads. This includes beginner questions and portfolio help. Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

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Swing trading involves constant monitoring of the chart. A trailing stop with a length equal to the correction depth partly simplifies the trader’s work. You need to specify the length of the Trailing Stop, the activation parameter for a positive order value, and the trailing activation parameter for manual/automatic trades.

How does a Spot Trailing Stop Order work?

If the position ever gets to the point where it’s 15% up then I just leave it there as a trailing stop loss. The trailing stop moves up only after a new high has been established. Once a trailing stop has moved up, it can no longer move down. Therefore, it gives the price time to correct and continue with the trend.


3 — The price resumes the upward movement without touching the trailing. As soon as the distance specified in the order parameters is set between the trailing and the price, the trailing again resumes the upward movement following the price. Let’s suppose that gold jumped to ADA a high of 1700 before pulling back – your trailing stop would go up to 1650 and would be triggered if the market fell below that price. Your position in this case would be closed at the breakeven level, i.e. without a loss.

What Are Trailing Stop Orders in Forex

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency. The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse.

This means you have the consistency of a swing trader plus, the ability to ride big trends . This technique is useful when trading a portfolio of stocks with equal weight for each position. If you buy ABC stock at $100 and have a trailing stop of 10%.

You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed. Since this is a trailing stop, you will also need to enter a trailing step.

Most traders find that Trailing Stops works best when set at 15% or 20%. Trailing stops are effective because they allow a trade to stay open and continue to profit as long as the price is moving in the investor’s favor. Percentage stops – Percentage stop losses close an open position once the loss exceeds a pre-specified percentage of your trading account. Where to set your stop depends on your trading strategy and the security you’re trading. Someone who is watching one-minute candles will probably set a tighter stop-loss than a trader who is watching one-hour candles.

Trailing stops help to lock in profits while keeping the trade open until the instrument’s price hits your trailing stop level. Your trailing stop-loss order can be set a specific number of points or a percentage distance from the original price. When the market price reaches your trailing stop, the stop-loss order will be triggered and your trade will be closed.

Order Type In Depth – Trailing Stop Sell Order

The best trailing stop percentage step decides how much the XAUUSD should move forward so that your stop moves with it. So, if you set your stop to move every time the XAUUSD moves five points, then it will move to 1605 when the XAUUSD calls 1655, and so on. A trailing stop helps prevent this by protecting profits from a successful trade while also minimizing losses. Any profit that you could have made from the position if you had closed it earlier will be lost. Go to the dashboard and choose the trade you want to set a trailing stop loss for. From this post, you now have a clear understanding of how it trails the price.

What is Take Profit and how to use it in the Forex market? Take Profit calculation methods and TP setting on LiteFinance’s platform and in Metatrader. Moves after the price following the specified length. It is activated only when the market price has passed the specified distance in points since the opening of the trade.

What is a good trail percentage?

The best trailing stop-loss percentage to use is either 15% or 20% If you use a pure momentum strategy a stop loss strategy can help you to completely avoid market crashes, and even earn you a small profit while the market loses 50%

However, if the share price rises, the stop-loss rises with it, remaining 10% below the market price. So, if the share price rises to £15, your trailing stop-loss also rises to £13.50. And, here if the price moves back to $40.15, the trailing stop will remain the same, i.e. it will stay at $40.10.

What is the best trailing stop method?

The most straightforward trailing stop-loss method is to establish a trailing stop amount and let the brokerage do the rest. For example, a trader could buy a stock at $54.25 and place a trailing stop-loss of $0.20. A trailing stop-loss will move the exit (stop-loss) of the trade to $0.20 below the most recent high.

In fact, they won’t (or shouldn’t) place any type of order without your consent. Deciding on the type of order to place is your responsibility. You can raise, lower, or cancel a trailing stop order at will, but you need to monitor your investment when substantial moves do occur to respond to the movement appropriately.

  • She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville.
  • A trailing stop order is a variation on a standard stop order that can help stock traders who want to potentially follow the trend while managing their exit strategy.
  • Let’s say you bought BTC at $20,000 and now if the price is moving up then you are profiting.
  • When the stock’s price moves to $110, change the stop-loss order to $99, and so on.

If PI continues to rise to $50, your trailing continues along with it to $45. Now say that PI reverses course and starts to plummet. The trailing stop stays put at $45 and triggers a sell order if PI reaches the $45 level. \nFor example, if you initially purchase a stock at $90 per share, ask the broker to place the stop-loss order at $81. Realize that brokers usually don’t place trailing stops for you automatically.

  • A good trailing stop loss percentage is 15% or 20%, which works great with almost all the stocks.
  • The daily chart shows a strong downtrend, on which it is possible to draw local and long-term trend lines.
  • When using a percentage for the trailing amount, remember that the actual point spread between the current price and trigger price will vary as the trigger price is recalculated.
  • To create the trailing amount, place a sell order and then choose “trail” under order type.
  • Let’s also assume that the distance from point 1 to point 2 is 40 pips.

A stop-loss is designed to best trailing stop percentage an investor’s loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let’s say, you just purchased BCH at 0.11 BTC. Right after buying the crypto asset, you enter a stop-loss order for 0.09 BTC.


Also, you aren’t guaranteed a price with a trailing stop order. The Order entity returned from the GET method has a few fields related to trailing stop orders. Like bracket orders, order replacement is supported to update limit_price and stop_price. Order replacement (PATCH /v2/orders) is supported to update limit_price and stop_price.


To understand this feature, assume that you slept at night without activating the stop-loss feature. And, at this time, the price of BTC starts falling and within an hour it has dropped 30% in price. But the idea behind the stop loss feature is to minimize your losses in case of a drastic pullback of the price of the cryptocurrency.

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