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Everyone in forex wants to lock in profits. No one likes to flush their earnings.

Tóm lược đại ý quan trọng trong bài

  • What Is a Trailing Stop
  • How Trailing Stop Loss Work
  • How to Set a Trailing Stop Loss On MT4
  • 1. Trailing Stop Loss with Moving Average
  • 2. Trailing Stop Loss with Average True Range
  • 3. Trailing Stop Loss with PSAR
  • 4.Trailing Stop Loss On Percentage
  • What Is The Method Of Setting Trailing Stop Loss In MT4
  • Why Do You Need Trailing Stop Loss?
  • Are Trailing Stops Using On MT4 Mobile App Nowadays?

IS IT POSSIBLE?

Of course! it is, but how to protect my profits on trading terminals??

A magic tool is available on trading platforms to make the pips in your tư vấn.

When the stock situations drive on reverse gear. This tool comes like superman to exit your trade. This superb indicator is known as a trailing stop.

How to use the trailing stop on MT4? A trailing stop is used in a productive profit zone. It is used behind (buy position) or above (sell position) the market price of your account. It can be dragged according to desirable value when the market goes against you.

In real life, you experienced meeting the losers that have a wonderful past of being top traders. The reason for this failure is that they target their trailing stop loss while price movements are hugging your profits.

What Is a Trailing Stop

The trading platform provides a tool to put the stop price at a certain point under (for buying hold) or over (for selling hold) the market price of an investment. Which may be the stock, forex, or some individual.

Simply it is a lock-in tool for your profits that works when the price movements go in your favor. When the market goes opposite by some amount, you will exit your trade.

How Trailing Stop Loss Work

Trailing stop users set the amount of trail for stop loss. You can say it a percentage of Pips. If the trailing stop is set on the open position(buy), the stop price high up with the number of trails. It happens in the case of market price raises.

In regards to trailing stops set up on the open position (sell), the stop price drop with the amount of trail if the market price decrease.

The stop-loss price remains the same when the capital price works reversely. A trailing stop will exit the position if the price strikes the trailing stop level.

How do traders set stop loss in MT4?

Traders set stop loss step by step:

  • Traders adjust it in MT4 by defining the volume of trailing stops in points.
  • Nextly, when the difference between the recent price and stop-loss price.

Cross the defined value, stop loss moved beyond the price.

  • Further, if the price goes in an unfavorable direction, the stop loss level will not change.
  • The situation continues till the trade ends up by stop loss.

How to Set a Trailing Stop Loss On MT4

Setting a trailing stop loss is not like kidding. After understanding it, beginners enjoy setting it. Traders fix trailing stop in different ways:

See also Trading Forex Like the Market Maker? [5 Tips to Win MMs]

1. Trailing Stop Loss with Moving Average

To scrape out the previous price, a beneficiary tool of moving average indicator works for you. Which appears like a line on your chart.

Trend prescription is possible by trailing stop loss.

How to set trailing stop loss with moving average?

Consider these points to set it:

  • Make a clear stance on the type of trend you like to play a trò chơi.
  • Choose the suitable moving average.
  • Just end your trade as the price closes along with it.

Now it is clear that if you like to try your luck along with a short-term trend, the moving average for your stop loss will be 20-periods. Also, you exit after the price closes behind it.

2. Trailing Stop Loss with Average True Range

Ever thought of setting 20 pip trailing stop loss? VERY FUNNY

The reason behind this is that it is adjusted without considering the liquidity of the market.

Now think about fitting a 20 pip stop loss as the market goes up an average of 200pips/day. It looks like using your money is like throwing tissue paper in the dustbin.

Solve this issue by using the average true range tool to fix a trailing stop depending on volatility.

How do you trail stop loss with the Average True Range?

To make a strategy depending on the mutual of average true range. (you may use 3,4,5).

By distracting the value of ATR from the tops, you will find your trailing stop loss. (while trading long term).

By adding the value of ATR from the bottoms, you will define your trailing stop loss (trading short term).

Guiding tips to make your trailing decision easy

  • 2ATR is best to try while depending on the short-term trends.
  • 4ATR is suitable to adjust while trading mid-term trends.
  • 6ATR is fit for trading long term.

3. Trailing Stop Loss with PSAR

Parabolic SAR or PSAR is another signal which facilitates a fine trailing stop. The parabolic SAR is a combined index of trend direction with trend power like incentive. In this way, a trailing stop is built to target the specific points.

How to calculate the PSAR?

Firstly, define the most top for an upper movement that points to an extreme point EP. Now an Acceleration Factor AFof 0.02 value is sum up to the above EP.

Which extends by 0.02 every time the most top is met.

The number of your acceleration doesnt affect, the reach of AF is limited to 0.20.

You can determine the acceleration factor by the multiplication of the difference between the extreme point and the SAR from before. Further, plus the answer to the SAR from earlier.

PSAR trailing stop is freely available MT4 EA which upgrades the stop-loss rate of your trading taste setting the value of the PSAR pointer.

4.Trailing Stop Loss On Percentage

Under the market price tagged with trailing stop fix the stop price at a certain number. As long as the market price goes high, the stop price with the trial amount also raises.

See also Has the Forex Market Ever Crashed? [5 Main Reasons]

However, in the case of a stock price drop, the stop-loss price remains the same. As the market price is targeted, it results in the submission of the market order.

With 10% trailing stop, under 10% of your BUY, a SELL is pulled off by your middle man. On $800. When the price never goes over $900 beyond your buy price.

The value of stop-loss will never cross from $800. When the price goes $ 910.the stop loss will reach above $809.That is 10% less than $910.

What Is The Method Of Setting Trailing Stop Loss In MT4

You have to go to the terminal. Now right-click the open position. Next, select the trailing stop to custom the trailing value of pips.

Just go through the following steps:

  • Choose the order you like to secure. Right-click on the terminal. Now a context menu will open. Go to look for the option of trailing stop.
  • A popped window will appear, let you pick a pip size towards the current market prices. Such pip sizes are already prescribed.
  • Your choice depends on your satisfaction. There is another option for you to generate a fresh one by custom click. Remember only one trailing stop is available for one position.
  • After the adjustment of the trailing stop, the terminal will observe it. No sooner did the prices get the required rate, a break-up stop loss will get active suddenly.

    At this stage, trailing stops will hunt the profit-gaining pips. However, when the movement is tracked in the reverse direction, your trailing stop comes forward to secure your profit.

    When you want to skip the trailing stop, you have to click the NONE from the open menu. By selecting DELETE ALL you can also quit the whole trailing stops of your open positions.

    Why Do You Need Trailing Stop Loss?

    Trailing stop loss is necessary to place for the reasons below:

    • Trends revolving in the market are quite uncertain.
    • It is hard to make predictions about trends
    • By placing the trailing stop you can enjoy the market offers full of taste.

    Are Trailing Stops Using On MT4 Mobile App Nowadays?

    MT4 mobile app is not available for fixing trailing stops nowadays. But traders avail trailing stop loss on their open positions on the desktop of the PC. However, old users are taking advantage of trailing stops.

    Conclusion

    The above post clarifies that trailing stop loss does not work when your computer is switched off.

    So to get benefited from trailing stop loss you have to turn on your computer all the time. Expert Advisor indicator shaped in trailing stop should be downloaded. Which indicates the fixing points trực tuyến.

    Trailing stops combined with MT4 are also working on other terminals like QUICK.

    Stop-loss offers and trailing stops are not the same. Stop-loss order works even if you are not present on the terminal.

    But trailing stops doesnt work when you are not attending your screens or your screens are powered off.

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