What is Trailing Stop?

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Hello, just looking for an answer to what Trailing Stop does in an EA.

Thanks

 
matrixebiz:
Hello, just looking for an answer to what Trailing Stop does in an EA. Thanks

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See this: http://www.interbankfx.com/trailing_stops.php

 

Ok, thanks but if this is the case why wouldn't your TP have kicked in and close the order already? What triggers your set TP then? Does TS override TP?

 

I just understand Trailing Stops yet.

If I have a trade with a TP=15 SL=15 and TS=6

How does the TS of 6 effect this trade? TS doesn't override TP does it?

If the price moves in my favor 6 pips does it move my SL up to it now so if my TP of 15 isn't hit at least I'll still break even with a TP of 6? is that right?

I've read elsewhere that it just moves the SL up 6 pips.

Thanks

 

"trailing stop" means to automagically move SL to ensure that it is no more than TS away from current price.

So, yes, as the price moves "up", the SL follows, to maintain the at-most-TS distance from the price. If the price moves down, SL stays put.

 

Yes, so if TS=6, once TS is hit, SL doesn't move SL up 6 but it moves it to bid, correct? so at least your 1 pip in profit if price goes wrong.

Why not just always use a TS of 1?

 
matrixebiz:
Yes, so if TS=6, once TS is hit, SL doesn't move SL up 6 but it moves it to bid, correct? so at least your 1 pip in profit if price goes wrong. Why not just always use a TS of 1?

The smallest TS MQ4 allows, i think, is 8 pips.

 
european:
The smallest TS MQ4 allows, i think, is 8 pips.

Ok, lowest might be 6 then, because I've been running firebird for a few weeks now with a TS of 6 and have many trades that have closed with 2pip profit. So I guess that it's working properly then. I never really understood how it worked but I think I get it now. Alot of the trades that were made must not have gotten to my TP but triggered my TS of 6 and closed the trade at bid making at least 1-2pips profit instead of loosing.

Does that sound about right?

 

Trailing Stop

Trailing Stop is a moving Stop Loss which moves in the direction of your trade.

if (OrderType() == OP_BUY) {

if (OrderStopLoss() < Bid-Point*TS) OrderModify(OrderTicket(),0,Bid-Point*TS,OrderOpenPrice()+Point*TP,0,CLR_NONE); }

if (OrderType() == OP_SELL) {

if (OrderStopLoss() > Bid+Point*TS) OrderModify(OrderTicket(),0,Bid+Point*TS,OrderOpenPrice()-Point*TP,0,CLR_NONE); }

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