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.
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