Trailing Stop is one of the best thing to automate the quitting from your trades.
What is Trailing Stop and how it works?
When you place a trade, you can also add a Take Profit value – where the system will close your trade when it goes to the right way continually – and Stop Loss – this is where the system will close when it goes to the wrong way.
Mostly the currency pairs are going up and down before they reach the SL or the TP. If you are sitting next to your computer, after some hours, days, you just want to quit from the trade. “It was only 10 point to reach TP and it turned back and went to negaive. Why I didn’t closed it?”
We can’t do it, mostly emotionally. Sometimes when you sitting there and you saw a retracement, you hope that it’s not that. Or its happening too fast (news) to close the trade in profit. And sometime you’re not sitting next to your computer when your trade goes to profit. So what to do?
In most of my trades I’m trying to reach 50-100 pips, but it’s not easy because of 2 things. I really hate whan my trade goes to profit (25-30 pips) and than goes back under my entry. So, I don’t care about the trade if the trade is too slow or waves too big. I set up Trailing Stop and let the things happen.
My setup is mostly depends on the pair, but if my broker let it, I’m useing 140-150 points TS in the beggining. That means, if my trade is in 15 PIPs profit, the SL automatically placed to the profitable area. After it reach the 300 points, I’m changing the TS to 80-100 points. If it’s not letting it (pairs with higher SPREAD), I’m placing the SL manually to the accepted higher SL near to 20 PIPs profit. The next step is 40 PIPs, when I’m placing the TP 50 PIPs higher. I’m doing it after every 50 PIPs positive movement.
The question is: Can I reach huge profits with this technique?
Probably not. Maybe if you pick a good news. But I chosed that I’ll trade safer, you I’m using Trailing Stop or SL/TP sliding to come out with profit from most of my trades.
So I suggest to try Trailing Stop and use it if you want…