Trailing stop question

hello… english is not my native language. so i wan to ask about the trailing stop i cannot seems to get at.

example i set buy at 1.3000

  1. do the trailing stop start as soon as you set it?? lets say i put a buyat 1.3000 and i set trailing 10 pip. So does it start counting at 1.3010 and put stoploss of 10 pip behind?? or it start counting at 1.3000 and put a 1.2990 behind?

  2. i buy at 1.3000, and after an hour it goes to 1.3300 , so i put a trailing stop of 200pip at 1.3300, so the it count from 1.3300 or 1.3000?? or it need to wait till 200 pip is reach then it put a 200 stoploss behind??

sorry if it confused .:confused:

I think you are overcomplicating the issue, I think the best way to think about it that if your trailing stop is 18 and the price has go to 1.3500, your trade will close when it goes back to 1.3582, I don’t think trailing stops are are as an effective strategy as it first seems.

With some brokers you have a choice on how a trailing stop works. So the answer to 1 and 2 depends on how you set the stop. Sometimes you need to put up a hard stop as well sometimes the TS never comes into play if your trade never moves in your direction in this case you would have no stop. This is what demo accounts are for. Test this out to see how your broker handles a TS.

I will add a TS sounds good in theory but a tight TS is often a slow drain on your account. If you are looking at a 10 pip trail I suggest looking at some other way to handle stops.