How do you set an automated per cent trailing stop on mt4?

Trading Discussion Risk Management Practices
1

Hi Traders,

I’ve read about setting a per cent automated trailing stop for stocks, but is it possible to set an automated per cent trailing stop for forex on MT4? If it is, how?

Per cent of what? Current price? Dollar Risk? Please explain.

Thank you,
Norm

2

@NormanA Why would you want to set a trailing stop loss percentage? You calculate your stop loss for Forex by describing the number of PIPS you wish to risk (entry minus stop loss to four significant figures or PIPs), and then you redefine your revised stop loss based on the price action of the underlying pair. Eg you go long GBPUSD at 1.2300 and set a stop loss at 1.2250 (50 pip stop loss). You trade the right direction and your price moves from 1.2300 to 1.2350 and you want to reset your stop loss at 1.2300. You redefine revised stop loss in PIPs not in % of pair value. What is the logic in wanting to reset stop loss in percentage of Value? There is no value, you are trading a pair, not a stock.

I am no expert here. Other comments welcome

3

I think Trailing stop is measured in pips not percentage.

4

Hi Mondeoman,

I know how to set the initial stop loss and of manually advance it according to various methods, but was curious to know how this one would work. Through research, I discovered that it would be a percentage of starting price, but I really don’t see the rationale behind that or a percentage of anything else, for that matter. Specifically, though, I’ve been pondering the best method for an automated trailing stop and thought that, perhaps, a percentage trail stop might work, but I nixed the idea.

I’m looking into automating my trail stop because, where I live, the very best trading sessions - London & New York - are exactly when I’m at work or sleeping! I’ve heard different versions of the fate of the stop loss if my computer powers off (electrical outage, etc.), and am checking with Oanda on that.

I’ve also considered Set & Forget techniques other than an automated trail stop, and it seems that the best is setting a profit target. In any case, I definitely won’t go with automating my trail stop unless I can be absolutely sure that at least the initial location of my stop loss would be retained on Oanda’s server. It would be much better if the last location of the stop before computer shut-down would be retained.

Anyway, I’m looking into all the possibilities and am being extremely careful about what I choose. To get back to your original question, it seems like setting a percentage trail stop is a non-starter.

Thanks for your input. Best to you,
Norm

5

Hi khanfiasa,

You’re correct. Whatever method one chooses for stop distance must be measured in or converted to pips, at least on the MT4 platform, which I use.

Thanks,
Norm.

6

@NormanA
Hi, thanks for response. About getting stopped out when computer is offline, most brokers offer a VPN service that maintains your “online” status even if your localmachine is offline. Look into VPN services. It is not the intuitive description of what you may think it is.

7

Hi Mondeoman,

Thanks for the suggestion. Would a VPN service retain the functionality of an automated stop loss if my computer were offline?

Norm

8

Yes, that is my understanding but please check with your broker that it would retain that functionality before using one.

9

:blush: Will do. Thanks

10

If you’re looking for an EA for MT4 that will set up a take profit (and stop loss) by percent, you might want to look at this one that I found and use in the marketplace. The way it works is you set up your initial take profit and initial stop loss. Then you set up to 4 take profit levels (based on percentage). When the price hits one of those take profit levels, the stop loss will automatically move to the last SL. And so on until your 100% take profit is hit (then a trailing stop will enable).

For example, using round numbers. Say you have a final take profit of 100 pips. You can set up 4 take profit levels of 25%, 50%, 75%, and say 80%. When the price hits 25%, then the Stop Loss can move to 12.5% (whatever you set). When price hits 50%, the stop loss will move to 25%. When price goes to 75%, stop loss will go to 50%. And so on.

This will lock in your profits and it’s based on percentage. I use the EA and it works great so far.

11

Hi Bobby,

Thanks for the heads up about the EA. I’m interested, and will look into it.

On the download page at the link you provided, it offers a Free Demo. Do you know how long the demo is good for? If you know that, please let me know so I could decide on the best time to download it.

Also, I just deleted from this post questions that I had about your numbers; but I just clicked the “more” button on the download page, and it has all the explanations. I’ll need to look at it more closely. If I have any questions, perhaps I can ask you.

Thank you Bobby,
Norm