I wish to use a trailing stop EA with intergrated [B]trailing Step function.
Is there somewhere maybe for once and for all a clear educational explanation of how an [B]trailing stop [U]and especially[/U][B] trailing step exactly works ?
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Yes the Babypips school has some material on this. Also, IMO I never use a trailing stop. Best to just set alerts and manage the stop manually. Brokers love taking pips from people using Trailing Stops ;D
Do you ever use just a set TP or base your exit on what the markets doing ?
A trailing step is used in conjunction with a trailing stop.
Trailing stops can use different methods for movement. For instance, a static number, a moving average, or fractals, or in your case steps just based on pip gains.
The step tells the stop when to move up. If you have a step at 50 pips, when your trade is profitable at 50 pips, your step would tell the stop to move up to break even. When you hit 100 positive pips, the step would kick in, and move your stop to +50, and so on.
Whereas, if you had a static number stop at 50 pips, once your trade hit 50 pips positive, the stop would move to B/E. If it went to 55 pips positive, your stop would move to +5, if it went to 63 pips positive, your stop would trail to +13, and so on, keeping that 50 pip from the latest high point.
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Yes, the babypips does have info on this as well as a few other resources including FF. And yes, using trailing step with trailing stop makes more sense than just opting to use trailing stop alone…
Do you guys think having the trailing stop at 10 pips and the step at 20 too tight?
Thanks
Not really, it’s up to you but personally do think that’s a bit too close, isn’t it?