I'm testing it atm, I see that I haven't let the trade "breathe" enough so I've been ending up in break even. I adjusted the parameters a bit now, so hopefully it's gonna be more of a success :) This is the first time I use trail stop, so no question I have figure out what works best in the market I trade in.
I use the 20 period moving average. It may not be the best but, to your point, it's easy for me and I understand it so I'm consistent with it. I've always been interested in using the ATR but always get confused or just don't know what the multiplier should be (atr x 1, atr x2 etc.). Great video, thank you.
With the ATR, anything that is less than 1 ATR is usually right in the middle of the noise. 2 ATR is far from the noise but not far enough to be absurd. Then just work around any obvious swing low or high. Thanks for the comments. New video coming tomorrow!
Exactly the information I have been looking for as well. I'm starting to think they ONLY want us to learn that by trial and error which- I'll pass on. Sim doesn't translate.
Trailing stops are awesome. Especially when you can tier them. Just make sure you know what you are basing your stop loss on! There are so many varients :)
Thats right and it's exactly the kind of video I'm looking for but I cant find a video on various scenarios like "tiering" them etc. Do you know of any? Thanks.
Although trailing stop loss is one of the automated tools in the arsenal, somehow I can't find much about it. In fact, this video is the most information I have got so far. I get that tight SL are hunted. I only go into a trade if I feel there's going to movement in the direction I'm looking for. So, I don't mind a loose SL. But i'll explain the problem I'm facing with loose trailing SL. And I hope you have a solution. For eg, I buy a stock at 100 and put a trailing SL at 93. 1) Now, the stock goes upto 105, so my trailing SL is at 98. If it keeps falling and hits 98, I end up with a loss. 2) Or, if the stock even goes the 109 and then falls, it hits my trailing SL at 102. Which, while a profit, is meager.
Consider using a trailing stop only when price travels X times your risk. First though, consider how you set your initial risk. Is it ATR? Swing levels? I would not use a trailing stop at the onset of a trade. Many times, depending on your trade criteria, it takes a bit of back and forth before trades head in your intended direction. Consider when price travels 1X risk, move to break even and scale out. If your trade travels 1x risk or close to, it makes no sense to give any of it back. The trade is a success at 1R. Then, test out your trailing stop method. At the very least, you make partial of the overall risk from the scale, and lose nothing. Test it out.
Setting trailing stop brackets is tricky and so far extremely vague- not taught- no videos. One would think that teaching risk management is a high priority but I cant find anything helpful on it.
Im finding that i can reset my trailing stop and confirm the change but i cant set it so i can watch the stock and follow the stock up or down with my stop on the chart ive seen it done many times but i dont know how to set it. Id like to see you filling out the brackets in various scenarions for going both long and short for TP,SL,TSL, OCO etc. There is NOTHING out here, no visual and no visible step by step video to watch the brackets being filled out and set BEFORE the trade is placed. I dont want to deal with that after ive placed a trade. Will you be the only ones who have a detailed video on risk management?
I use TS in my forex trading. I remember this one trade I did with the Q’s I got out to soon; oh I made a profit of $800, but had I had a TS I could have captured $3,000. Not complaining of course, just sharing my trade for this video.
Percentage based stops are blind stops - meaning why not 15 or 20%? Using a volatility based trailer respects market conditions. With %, you'd have to decide if it's different for each instrument. That said, any stop is certainly better than none at all.
i only set trail stop when i see numbers i am happy to sell but i am scared that i sell too early. am i right? so i example i was suppose to sell at $1. instead i set a stop loss at $0.95 then i set a 5% trial . so every time the stock moves up 5% my new stop loss will set up 5% so become $0.9975??
A trailing stop strategy should be an objective strategy...not implemented because you are afraid of selling too early. I don't use a percentage of price movement.....I use average true range. If my stop is outside the normal fluctuation of price, it is safe. Once the state of the market changes, I can get out. Sometimes get spiked out? Yes. But I also have an option to renter if my setup presents.
In your example of using a 25% ATR TSL, I use a 90% ATR TSL because I'm working with a daily chart with 2 trades. One to lock in the profit target and the other to run free. Both positions have the TSL set which ensures only green figures if your entry strategy is solid.
@@MyRoyalties Is it free and is there a certain amount of time you can use it per day. What is better setting the TSL at a percentage or dollar amount I hear most people say 5-20 percent. Do you think the two steps forward one step back TSL strategy is a good one? If so also what TSL strategy works best in a volatile market or if you fear a break out
There is not and never will be "best" in anything for trading. I personally use average true range for trailing stops. You could keep it simple and use previous swing lows or highs
So what do you think? Are trailing stops something you use in your trading or considering to add them? What would use to trail?
I'm testing it atm, I see that I haven't let the trade "breathe" enough so I've been ending up in break even. I adjusted the parameters a bit now, so hopefully it's gonna be more of a success :) This is the first time I use trail stop, so no question I have figure out what works best in the market I trade in.
I use the 20 period moving average. It may not be the best but, to your point, it's easy for me and I understand it so I'm consistent with it.
I've always been interested in using the ATR but always get confused or just don't know what the multiplier should be (atr x 1, atr x2 etc.).
Great video, thank you.
With the ATR, anything that is less than 1 ATR is usually right in the middle of the noise. 2 ATR is far from the noise but not far enough to be absurd. Then just work around any obvious swing low or high. Thanks for the comments. New video coming tomorrow!
Exactly the information I have been looking for as well. I'm starting to think they ONLY want us to learn that by trial and error which- I'll pass on. Sim doesn't translate.
Trailing stops are awesome. Especially when you can tier them. Just make sure you know what you are basing your stop loss on! There are so many varients :)
Thats right and it's exactly the kind of video I'm looking for but I cant find a video on various scenarios like "tiering" them etc. Do you know of any? Thanks.
Although trailing stop loss is one of the automated tools in the arsenal, somehow I can't find much about it.
In fact, this video is the most information I have got so far.
I get that tight SL are hunted.
I only go into a trade if I feel there's going to movement in the direction I'm looking for. So, I don't mind a loose SL.
But i'll explain the problem I'm facing with loose trailing SL. And I hope you have a solution.
For eg, I buy a stock at 100 and put a trailing SL at 93.
1) Now, the stock goes upto 105, so my trailing SL is at 98. If it keeps falling and hits 98, I end up with a loss.
2) Or, if the stock even goes the 109 and then falls, it hits my trailing SL at 102. Which, while a profit, is meager.
Consider using a trailing stop only when price travels X times your risk.
First though, consider how you set your initial risk. Is it ATR? Swing levels?
I would not use a trailing stop at the onset of a trade. Many times, depending on your trade criteria, it takes a bit of back and forth before trades head in your intended direction.
Consider when price travels 1X risk, move to break even and scale out. If your trade travels 1x risk or close to, it makes no sense to give any of it back. The trade is a success at 1R.
Then, test out your trailing stop method. At the very least, you make partial of the overall risk from the scale, and lose nothing.
Test it out.
EXACTLY. I can't find anything on it either. Only videos where they're already set.
Setting trailing stop brackets is tricky and so far extremely vague- not taught- no videos. One would think that teaching risk management is a high priority but I cant find anything helpful on it.
Im finding that i can reset my trailing stop and confirm the change but i cant set it so i can watch the stock and follow the stock up or down with my stop on the chart ive seen it done many times but i dont know how to set it. Id like to see you filling out the brackets in various scenarions for going both long and short for TP,SL,TSL, OCO etc. There is NOTHING out here, no visual and no visible step by step video to watch the brackets being filled out and set BEFORE the trade is placed. I dont want to deal with that after ive placed a trade. Will you be the only ones who have a detailed video on risk management?
I use TS in my forex trading. I remember this one trade I did with the Q’s I got out to soon; oh I made a profit of $800, but had I had a TS I could have captured $3,000. Not complaining of course, just sharing my trade for this video.
Literally did the knee-jerk thing when starting out, thank you for this video :)
I think we all did......and maybe do on occassion.
Thanks for the lesson very informative. But with the Costco example, it appears you would get very similar gains with a simple GTC 10% training stop.
Percentage based stops are blind stops - meaning why not 15 or 20%? Using a volatility based trailer respects market conditions. With %, you'd have to decide if it's different for each instrument. That said, any stop is certainly better than none at all.
i only set trail stop when i see numbers i am happy to sell but i am scared that i sell too early. am i right? so i example i was suppose to sell at $1. instead i set a stop loss at $0.95 then i set a 5% trial . so every time the stock moves up 5% my new stop loss will set up 5% so become $0.9975??
A trailing stop strategy should be an objective strategy...not implemented because you are afraid of selling too early. I don't use a percentage of price movement.....I use average true range. If my stop is outside the normal fluctuation of price, it is safe. Once the state of the market changes, I can get out. Sometimes get spiked out? Yes. But I also have an option to renter if my setup presents.
In your example of using a 25% ATR TSL, I use a 90% ATR TSL because I'm working with a daily chart with 2 trades. One to lock in the profit target and the other to run free. Both positions have the TSL set which ensures only green figures if your entry strategy is solid.
You are ahead of many by simply having a taking profits/stops plan! Good on you.
@@Netpicks1 Thanks. Also, depending on your strategy and style, you don't have to think about an exit plan too much when there's a TSL.
@@MyRoyalties Is it free and is there a certain amount of time you can use it per day. What is better setting the TSL at a percentage or dollar amount I hear most people say 5-20 percent. Do you think the two steps forward one step back TSL strategy is a good one? If so also what TSL strategy works best in a volatile market or if you fear a break out
GOOD SIR
So what’s the best setting for mt4 trailing stop ?15/20/30?
There is not and never will be "best" in anything for trading. I personally use average true range for trailing stops. You could keep it simple and use previous swing lows or highs
High Velocity Wave Trader - Learn More - www.netpicks.com/hvwt1118encore
hi! may I ask if trailing stop in Oanda works even offline?thanks.
You have to enter the trailing stop through FX Trade and not MT4 in order for offline trailing to work.
What about the EA's on the fx trade when offline?
FX Trade doesn't use any EA.