A trailing stop is a ‘smart’ stop order that recognizes that losing only a certain % of money is acceptable, and a hard price level isn’t always appropriate. A trailing stop will effectively follow the current position’s profit, and it will execute if the price goes in the opposite direction. However, if the trailing stop is set too tight, in a volatile market a position can be closed before it really is desirable.
Trigger level for Buy order should be reached on the Ask price at broker in order to activate the Trailing stop order. Trigger level for Sell order should be reached on the Bid price at broker in order to activate the Trailing stop order.
Trailing Stop Strategy is displayed as orange marker on the chart connected to the order price label on the price scale with a dotted line and as orange marker in the DOM window.
For the chart window, connecting line length can be modified in Format Chart Trading menu.
Applying Trailing Stop Exit Strategy
- Drag-and-drop the Trailing Stop icon to an active order or open position on the chart; or:
- Drag-and-drop the Trailing Stop icon to an active order or open position on the DOM window; or:
- Right-click on the active order or open position on the chart to see the shortcut menu, select Attach Exit Strategy and click Trailing Stop.
- Right-click on the active order or open position on the DOM window to see the shortcut menu, select Attach Exit Strategy and click Trailing Stop.
- Right-click on the Trailing Stop icon in the Exit Strategy menu to see the shortcut menu and check Apply To Open Position.
Trailing Stop Exit Strategy Parameters
To modify default Trailing Stop Parameters:
- Right-click the Trailing Stop Strategy icon in Exit Strategy menu to see the shortcut menu.
- Click Edit…
- Set the desirable Number of Levels and amounts of profit and stop loss in the Number of Level box.
- Modify amounts of profit and stop loss values for each level in Amount of Profit and Stop Loss boxes.
Trailing Stop Strategy may contain up to 5 levels.
Amount of Profit and Stop Loss offsets can be indicated as ticks or %. To change indication type, click the Tick/Percent button.
Click More Parameters >> to show Time In Force box (see Time in Force section) and Stop Loss type buttons.
To save custom parameters, click Save.
Auto Attach Trailing Stop Exit Strategy to orders by one of the following methods:
- Right-click the Trailing Stop icon in the Exit Strategy menu to see the shortcut menu, then check Auto Attach to Orders; or:
- Double-click the Trailing Stop icon in the Exit Strategy menu; or:
- Enable Auto Attach to Orders feature in the Place Strategy window when applying the strategy.
When one or several Exit Strategies auto attached, the Pause/Auto Apply button with the number of auto attached exit strategies in brackets will be shown in Exit Strategy menu. Click Pause to temporarily disable auto attach feature.
When auto attach feature is paused, no Exit Strategies will be automatically applied to an each new entry.
To re-enable auto attach feature click Auto Apply.
Saving as Template
To save the parameters as a template:
- Open Strategy Parameters window by one of the following methods:
- Modify default Trailing Stop Parameters.
- Click Save.
- Choose the Trailing Stop template icon.
- Enter Trailing Stop Template name.
- Click OK.