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Could I get a more detailed explanation of the trailing stop please?

 
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edbrown

Could I get a more detailed explanation of the trailing stop please?

I understand the concept and value of the trailing stop and, to some extent how it works.  I would like to get a better handle on the mechanics however.

Here are my questions:

1) If i set a 10 pip SL, does the TS start functioning once the trade is 10 pips positive?  Does is adjust 1 pip for every pip of positive price change?

2) If my SL is 40 pips, does the TS only take effect once my trade is 40 pips positive?  And again, does it adjust on a one-to-one basis with price change?

3) is there a way to set the SL to automatically kick in when price reaches a certain point?

4) Is there a similar function for a Take Profit - where the TP would adjust as the price gets closer to the target?

 

Thanks in advance for the answers!

 

Ed

Sun, 11/04/2018 - 11:30pm
 
burton

just open a trade with a 10 pip trailing stop...

as the trade goes positive the stop will advance. however, if the trade goes negative the stop will remain unchanged. if it has been advanced and then goes negative the stop will remain at it current position.

nothing more to tell.

 
jlowe4all

Thanks for the explanation Burton. I was not 100% clear on how trailing stops worked myself so that helps a lot.

 
burton

jlowe4all, you are welcome.