Hi Team
I have been using a trailing stop loss on MT4 and it normally closes me out of the position during temporary trend reversals and then the trend continues in my favor but the trailing stop loss would have closed me out of the position already.
Is the a way I can set trailing stop loss in a way that it doesn’t close me out of a position early?
How many pips should i set for a trailing stop loss?
I would [I][U]avoid[/U][/I] them, if I were you. In general, for most systems, most of the time, they [I][U]lose[/U][/I] money.
I have several different reasons for believing this …
(i) When I tested my own five little systems, only one of them gained from a trailing stop: the others all lost;
(ii) In other forums, when I’ve occasionally made this comment, I’ve always had some “Good heavens - you’re right!” comments from people who have methodically backtested it for the first time and realised that they were more profitable [U]without[/U] the trailing stop;
(iii) All the authors whose textbooks I really respect and whose opinions have proven right and beneficial to me in other areas seem fairly opposed to trailing stops. Authors like Linda Bradford Raschke explain in their books in more detail than I can, in a forum-post, why they’re such a bad idea, overall.
They always look and sound attractive and appealing, but it’s very easy to lose count of the times a trade starts off doing well and then retraces a bit (just enough to take out the trailing stop, which has of course moved during the initial phase of the trade), before continuing on its merry way in the “right direction”. So the times that trailing stops cost money tend to be “opportunity cost” money, i.e. you make less than you might have done, i.e. they’re profitable trades anyway (often) which is why one doesn’t always “notice” as much as one would if one were looking at actual losses.
I’m not, myself, willing to use automated trailing stops in the absence of [B]really[/B] clear-cut, statistically valid proof that they’re better, for a specific system, than other methods are - and that’s very rare.
These recent threads may also help/interest you, Ronald … and by the way, welcome to the forum (I know you joined a while ago, but I mean “welcome as a posting member”!). 
http://forums.babypips.com/newbie-island/80599-trailing-stop-loss-question.html[/B]
When you position is in profit, first you need to close some part of your position in order to secure some sure profit in your account. You can move your stop loss to a plus point, check for recent support or resistance that’s just got broken, or place it a last high or low after market have made a move.
I too have tested trailing stop loses and come to the conclusion that the moment they are triggered and in place then that is your maximum profit!
The odd occasion it has worked is when I have been lucky enough to be on the right side of fundamentals and price has accelerated, locking in lots of profits before a retracement. This is rare and ultimately I think you need to accept that the moment your stop loss has moved up then that’s where it ends.
You should use trailing stop trading too when you are very sure on the direction of market, don’t use trailing stop in a range! Yes, I also use trailing stop but not in initial stage of my trading! When I get enough number of pips and till now market shows me good momentum according to my direction, only then I use trailing stop!