Forex Zone - Forex Forum

Trailing Stop in Trading Management

Discussion started on Forex Education

  • Hero Member
  • Posts: 9575
  • Points: 59
  • Likes Received: 728
  • Reputation: +10/-20
Trailing stop is a trading facility that helps you adjust stop loss more systematically and automatically when trading is still running. Why does the stop loss need to be adjusted again when trading is still running? Isn't the stop loss supposed to have been arranged in such a way as to be able to secure a trading position? In fact, this action also needs to be done to prevent losses because it can make your trading results breakeven too so that the profits that you have achieved can be protected.

With the trailing stop, at least you will not be faced with initial losses. This is quite calming because after trailing stop working, you have been given a breakeven guarantee, where there is no loss. Even though your trading has not yet made a profit. Obviously you have avoided losses when trailing starts working. The break-even point can help you eliminate the initial risk when trading.

The nature of the manual type trailing stop is that it makes it easier for traders to increase the stop loss bit by bit based on the forex market movements. If you use automation, the trailing stop shift seems stiff and usually the results obtained cannot be maximized. This is clearly different from the use of manual trailing stops that you can practice to adjust the stop loss movement according to price movements.
Trailing stop can be a very effective strategy to "lock in" profits so that the trader will not experience loss (loss) due to being hit by a stop loss. Manual methods like this will work dynamically following the break market and can continue to be done, until the price actually touches the stop loss from trailing.


Linkback: https://www.forex.zone/forex-education/29/trailing-stop-in-trading-management/2273/
#1 - July 19, 2019, 01:10:44 AM

  • Newbie
  • Posts: 11
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
Trailing stop is a trading facility that helps you adjust stop loss more systematically and automatically when trading is still running. Why does the stop loss need to be adjusted again when trading is still running? Isn't the stop loss supposed to have been arranged in such a way as to be able to secure a trading position? In fact, this action also needs to be done to prevent losses because it can make your trading results breakeven too so that the profits that you have achieved can be protected.

With the trailing stop, at least you will not be faced with initial losses. This is quite calming because after trailing stop working, you have been given a breakeven guarantee, where there is no loss. Even though your trading has not yet made a profit. Obviously you have avoided losses when trailing starts working. The break-even point can help you eliminate the initial risk when trading.

The nature of the manual type trailing stop is that it makes it easier for traders to increase the stop loss bit by bit based on the forex market movements. If you use automation, the trailing stop shift seems stiff and usually the results obtained cannot be maximized. This is clearly different from the use of manual trailing stops that you can practice to adjust the stop loss movement according to price movements.
Trailing stop can be a very effective strategy to "lock in" profits so that the trader will not experience loss (loss) due to being hit by a stop loss. Manual methods like this will work dynamically following the break market and can continue to be done, until the price actually touches the stop loss from trailing.
Trafficking stops are indeed a strategy to secure a pretty good profit but in my opinion it is rarely used, either because it is too complicated or indeed does not need the strategy. If for me, trafficking stops is indeed sometimes quite helpful, but not in all conditions, I can apply a trending stop.
#2 - July 19, 2019, 02:13:52 AM

  • Full Member
  • Posts: 151
  • Points: 178
  • Likes Received: 4
  • Reputation: +1/-1
trailing stops are rarely used, but in fact they function the same as the risk reward ratio, which is to maximize the profits and sometimes I use them if possible.
#3 - February 24, 2020, 11:31:53 PM

  • Sr. Member
  • Posts: 250
  • Points: 396
  • Likes Received: 9
  • Reputation: +0/-0
trailing stops are quite useful and can maximize profits if used properly according to conditions but not all traders take advantage of trailing stops.
#4 - February 25, 2020, 07:57:51 AM

  • Full Member
  • Posts: 234
  • Points: 426
  • Likes Received: 12
  • Reputation: +1/-0
the function of the trailing stop is to maximize the potential profit, if we can apply the trailing stop well then in addition to loss can be very minimal also the profit will be quite maximal.
#5 - March 02, 2020, 04:05:12 PM

  • Full Member
  • Posts: 180
  • Points: 299
  • Likes Received: 6
  • Reputation: +1/-0
the use of trailing stops is optional so if we can maximize the use of trailling stops it will actually be more profitable because the function of tradilling stops is to minimize losses and maximize profits as much as possible.
#6 - March 10, 2020, 07:33:27 PM

  • Jr. Member
  • Posts: 78
  • Points: 4549
  • Likes Received: 3
  • Reputation: +0/-0
although I rarely use trailing stops but I believe that trailing stops are a pretty good feature and are effective in maximizing profit targets if tradedr uses these platform features well.
#7 - March 11, 2020, 01:10:32 AM

  • Sr. Member
  • Posts: 444
  • Points: 0
  • Likes Received: 31
  • Reputation: +2/-0
Trailing stop according to my knowledge is to maximize profits with orders that can be set at a certain percentage that moves with price changes. 
Very well applied to our trade.
#8 - March 11, 2020, 01:15:47 AM

  • Hero Member
  • Posts: 1048
  • Points: 5674
  • Likes Received: 111
  • Reputation: +4/-0
I sometimes use a trailing stop when experiencing floating minus because I feel it will be much better if the profit is maximized, what should not be done is to move the stop los in the farther direction, if in the trailing stop it is possible because the stop loss will be smaller.
#9 - March 11, 2020, 06:44:55 AM

  • Full Member
  • Posts: 192
  • Points: 494
  • Likes Received: 3
  • Reputation: +0/-0
in trading management, trilling stops are rarely used but if traders often use and master the trailing stop strategy well then the potential profit will increase as well as the risk of loss is also getting smaller.
#10 - March 17, 2020, 04:56:47 PM

  • Full Member
  • Posts: 147
  • Points: 311
  • Likes Received: 1
  • Reputation: +0/-0
I have often used the trailing stop strategy and it is quite effective especially when the trend is strong then the trailing stop is the right choice.
#11 - March 18, 2020, 07:46:31 AM

  • Hero Member
  • Posts: 701
  • Points: 5910
  • Likes Received: 39
  • Reputation: +1/-1
trailing stop is a good management to maximize profit because it is unfortunate if the trend is strong but instead we limit the profit target.
#12 - March 21, 2020, 08:12:27 AM

  • Newbie
  • Posts: 40
  • Points: 1193
  • Likes Received: 3
  • Reputation: +0/-0
although trailing stops are rarely used but if a trader can maximize under certain conditions it will be very effective and help maximize profits so that we can manage profit targets better.
#13 - March 28, 2020, 12:18:16 AM

  • Sr. Member
  • Posts: 296
  • Points: 0
  • Likes Received: 37
  • Reputation: +1/-0
although trailing stops are rarely used but if a trader can maximize under certain conditions it will be very effective and help maximize profits so that we can manage profit targets better.
most traders don't take advantage of trailing stops, they prefer instant take profit.
I agree, that the use of trailing stops that are used as profit management will help maximize profits.
#14 - March 29, 2020, 08:53:10 AM

  • Sr. Member
  • Posts: 452
  • Points: 2273
  • Likes Received: 13
  • Reputation: +0/-0
Trailling stops are rarely used but for experienced traders this feature is great for maximizing profits while minimizing risk so that if this feature is already running we will be calmer.
#15 - April 20, 2020, 02:22:12 AM

Members:

0 Members and 2 Guests are viewing this topic.