Please what is trailing stop loss and how does one us it.? How can I set up Trailing stop loss on mT4 using mobile phone. Thanks please educate me am a beginner
Trailing stop loss moves with price, if the price moves in your favor. If you can’t or don’t have time to move stop loss to cut possible damage, trailing stop loss does this job for you. But it is a kind of “stupid” tool because algorithm of change is simple - always keep N pip of distance between current price and stop loss price if the current price is above order opening. Volatility affects really bad trades which have trailing stop loss set on them.
I’d like to see a very long-run backtest of trailing SL’s before I would accept it a s a profitable tactic. My own belief, with only circumstantial evidence, is that TSL is recommended by trading writers and teachers because they don’t really work very well but they don’t fail suddenly. So you don’t get wiped out and get sore at them all over the internet but you might be tempted to recommend their work and buy another book or subscription.
TSL is a good way to guarantee you always lose some profits but looks good if your SL is too tight anyway (which probably means your time-frame is too short).
On the other hand TSL is probably the most appropriate trading feature to have a trade-off between “keep profits long, cut losses short” principle and “accept losses” rule
Anyone can correct me if I’m wrong but you cant set a TSL on mobile phone if you can someone please tell me cause I would love to do that… as far as setting proper TSL is based on that specific pairs ATR=average tru range , ADR=average daily range… example: GBPUSD has a ADR of 100-125 pips so the next thing is determined by your trading style are you a scalper… if you are TSL does not apply…if you are a intraday or day trader then you set a TSL of 65-75 pips this only guarantees you wont lose the trade but that’s only based on your entry…did you catch the beginning of the trend or did you enter on a pullback…So since you say you are a beginner if you dont know market structure like supply/demand, support / resistance, pivot points, daily range, previous high/low, each pairs ADR/ATR You need to learn these 1st before understanding how to properly use TSL.(cause there is no one setting fits all)…I believe all this is taught in the babypips academy training modules
Hey guys, I am just beginning as a Forex trader. My friends recommend me to join BabyPips. I hope you all are doing good. Thanks.
The trailing stop loss is generally affected by the price. It makes changes on your behalf.