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Trailing Entries & Trailing Stops?

  • #1
  • First Post: Sep 19, 2007 7:02pm Sep 19, 2007 7:02pm
Can anyone please shed some light on Trailing Entries & Stops. I have read about them in the forum but doesn't quite understand how to actually trade with them. Thanks for the help in advance.
  • #2
  • Sep 20, 2007 8:23am Sep 20, 2007 8:23am
Quoting khalchian
Can anyone please shed some light on Trailing Entries & Stops. I have read about them in the forum but doesn't quite understand how to actually trade with them. Thanks for the help in advance.
there's a search function.
  • #3
  • Sep 20, 2007 8:29am Sep 20, 2007 8:29am
Quoting Canyouseeme
there's a search function.
On the left side

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<==== Look over here...
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  • #4
  • Sep 20, 2007 9:35am Sep 20, 2007 9:35am
Quoting khalchian
Can anyone please shed some light on Trailing Entries & Stops. I have read about them in the forum but doesn't quite understand how to actually trade with them. Thanks for the help in advance.
(My definitions) Trailing Entries: We'll assume price is in a upward trend overall, but is currently in a retracement AGAINST that trend (ie is going down), we look to see a possible point where the down move might end, and price could start going back up. This could be an approach to a Moving Average (MA), a Support (or Resistance) area (S/R) or maybe a Fibonacci retracement level. We could then place an order, either at a point close to your chosen area (in this case it would be a Buy Limit Order) or set a Buy Stop Order above the area, in the latter case you'd be waiting for price to halt its decline and resume the main upward trend again.

Trailing Stop: OK, so your plan has worked. Price hits one or other of your orders and is moving into profit. We'll assume you have a potential Profit Taking area in mind, and we'll assume its 100 pips away. Now as price keeps moving in your favour and you want to make sure you don't give too much back to the broker if price fails to maintain its up move. So you decide to set a Trailing Stop (TS) of 35 pips. As soon as your trade moves into profit, your TS will move up with price - 35 pips behind. With most brokers, the TS will move a pip at a time so when your trade is 37 pips in profit, your 35 pip TS will ensure at least 2 pips profit. With every new high the TS moves up. If price retraces the TS will stay at its last position.

Depending on your broker you may need to keep your trading platform connected to ensure the TS keeps moving, and some only move the TS every 5 - 10 pips. You'll need to check with your broker
  • #5
  • Sep 20, 2007 12:01pm Sep 20, 2007 12:01pm
Quoting Canyouseeme
there's a search function.
don't do think I know that. why don't you try and find what you get.
  • #6
  • Sep 20, 2007 12:03pm Sep 20, 2007 12:03pm
Quoting melpheos
On the left side

<==
<===
<==== Look over here...
<===
<==
Isn't this supposed to be beginners forum!!!
  • #7
  • Sep 20, 2007 12:06pm Sep 20, 2007 12:06pm
Quoting PeterFM
(My definitions) Trailing Entries: We'll assume price is in a upward trend overall, but is currently in a retracement AGAINST that trend (ie is going down), we look to see a possible point where the down move might end, and price could start going back up. This could be an approach to a Moving Average (MA), a Support (or Resistance) area (S/R) or maybe a Fibonacci retracement level. We could then place an order, either at a point close to your chosen area (in this case it would be a Buy Limit Order) or set a Buy Stop Order above the area, in the latter case you'd be waiting for price to halt its decline and resume the main upward trend again.

Trailing Stop: OK, so your plan has worked. Price hits one or other of your orders and is moving into profit. We'll assume you have a potential Profit Taking area in mind, and we'll assume its 100 pips away. Now as price keeps moving in your favour and you want to make sure you don't give too much back to the broker if price fails to maintain its up move. So you decide to set a Trailing Stop (TS) of 35 pips. As soon as your trade moves into profit, your TS will move up with price - 35 pips behind. With most brokers, the TS will move a pip at a time so when your trade is 37 pips in profit, your 35 pip TS will ensure at least 2 pips profit. With every new high the TS moves up. If price retraces the TS will stay at its last position.

Depending on your broker you may need to keep your trading platform connected to ensure the TS keeps moving, and some only move the TS every 5 - 10 pips. You'll need to check with your broker

Thanks Peter
Appreciate your help, when one gets stuck at something little help goes the long way. Everybody who is seeking help here is still in the learning process, Success will come one day. Thanks Peter once again.
  • #8
  • Sep 20, 2007 2:38pm Sep 20, 2007 2:38pm
Quoting khalchian
Thanks Peter
Appreciate your help, when one gets stuck at something little help goes the long way. Everybody who is seeking help here is still in the learning process, Success will come one day. Thanks Peter once again.
And if no-one had answered mine I might not be here now.
Some stuff is very easy to find, if not here, then try Investopedia http://www.investopedia.com/search/results.aspx?q=Forex there are some good articles on a range of FX stuff. Just ignore the adverts. No need to pay money to snake-oil salesmen when all you need is here, somewhere.
  • #9
  • Sep 21, 2007 5:35am Sep 21, 2007 5:35am
Quoting PeterFM
(My definitions) Trailing Entries: We'll assume price is in a upward trend overall, but is currently in a retracement AGAINST that trend (ie is going down), we look to see a possible point where the down move might end, and price could start going back up. This could be an approach to a Moving Average (MA), a Support (or Resistance) area (S/R) or maybe a Fibonacci retracement level. We could then place an order, either at a point close to your chosen area (in this case it would be a Buy Limit Order) or set a Buy Stop Order above the area, in the latter case you'd be waiting for price to halt its decline and resume the main upward trend again.

Trailing Stop: OK, so your plan has worked. Price hits one or other of your orders and is moving into profit. We'll assume you have a potential Profit Taking area in mind, and we'll assume its 100 pips away. Now as price keeps moving in your favour and you want to make sure you don't give too much back to the broker if price fails to maintain its up move. So you decide to set a Trailing Stop (TS) of 35 pips. As soon as your trade moves into profit, your TS will move up with price - 35 pips behind. With most brokers, the TS will move a pip at a time so when your trade is 37 pips in profit, your 35 pip TS will ensure at least 2 pips profit. With every new high the TS moves up. If price retraces the TS will stay at its last position.

Depending on your broker you may need to keep your trading platform connected to ensure the TS keeps moving, and some only move the TS every 5 - 10 pips. You'll need to check with your broker

i was thinking something like trailing entry would be helpful........didn't realize they exist !

any broker that has trailing entry you can suggest ?

thank you very much indeed.
  • #10
  • Sep 21, 2007 7:11am Sep 21, 2007 7:11am
Quoting findcount
i was thinking something like trailing entry would be helpful........didn't realize they exist !

any broker that has trailing entry you can suggest ?

thank you very much indeed.
It's more a terminology thing, not a normal broker related order type.

If you're watching price go up, and, for whatever reason, you want to go go short at some time, you could set a sell order below price. If price keeps going up, and you still believe it's due to fall, you keep moving your sell order higher. That way you're trailing your entry. The broker won't set it, you have to.

It's like a Trailing Stop (TS), inasmuch that it moves with price but in this case you're not actually in a trade until the order gets hit. Whereas with the TS you're trailing price to protect the profit of a live trade. In this case, the broker will do it for you, subject to the conditions I've mentioned above.
  • #11
  • Sep 21, 2007 8:15am Sep 21, 2007 8:15am
Quoting findcount
i was thinking something like trailing entry would be helpful........didn't realize they exist !

any broker that has trailing entry you can suggest ?

thank you very much indeed.
TradeStation
  • #12
  • Sep 22, 2007 3:38am Sep 22, 2007 3:38am
Quoting khalchian
don't do think I know that. why don't you try and find what you get.
I apologize for my rudeness, yes this is the beginners forum and I like to answer questions here, the point just is if everybody would post every question that came to his mind without searching then this forum soon would help nobody because it is filled with hundreds of "what is a resistance zone" or "what is a trendline" threads. (After all you are probably not familiar with the search function so I should've reacted in an other way.)

And to fullfill your request:
http://www.forexfactory.com/showthre...op#post1467919
http://www.forexfactory.com/showthre...top#post243161
http://www.forexfactory.com/showthre...top#post130465

You also get pretty good information if you google for "trailing stop" + forex
or "how does a trailing stop work"
  • #13
  • Sep 22, 2007 4:04am Sep 22, 2007 4:04am
Quoting PeterFM
It's more a terminology thing, not a normal broker related order type.

If you're watching price go up, and, for whatever reason, you want to go go short at some time, you could set a sell order below price. If price keeps going up, and you still believe it's due to fall, you keep moving your sell order higher. That way you're trailing your entry. The broker won't set it, you have to.

It's like a Trailing Stop (TS), inasmuch that it moves with price but in this case you're not actually in a trade until the order gets hit. Whereas with the TS you're trailing price to protect the profit of a live trade. In this case, the broker will do it for you, subject to the conditions I've mentioned above.

yes, many thanks.........

so it's a function offered by the broker if i'm not wrong or i've to do it manually..........
  • #14
  • Sep 22, 2007 4:05am Sep 22, 2007 4:05am
Quoting philmcgrew
TradeStation

but tradestation isn't a broker, am i wrong ?
  • #15
  • Sep 22, 2007 4:40am Sep 22, 2007 4:40am
Quoting findcount
yes, many thanks.........

so it's a function offered by the broker if i'm not wrong or i've to do it manually..........
Unless, as Phil says, you are trading through Tradestation (thanks Phil, I didn't know that).

It's the Trailing Stop that's automatic, depending on how your broker works.
  • #16
  • Sep 22, 2007 6:28am Sep 22, 2007 6:28am
Quoting findcount
but tradestation isn't a broker, am i wrong ?
TradeStation is a a broker and a platform. You can use their platform without them being your broker but you can't use them as your broker without the use of their platfrom.
  • #17
  • Sep 22, 2007 7:08am Sep 22, 2007 7:08am
Quoting philmcgrew
TradeStation is a a broker and a platform. You can use their platform without them being your broker but you can't use them as your broker without the use of their platfrom.

many thanks......didn't know that.......so i reckon it's not free to use their platform eh ?

how's their reputation by the way ?
  • #18
  • Sep 22, 2007 7:23am Sep 22, 2007 7:23am
Quoting findcount
many thanks......didn't know that.......so i reckon it's not free to use their platform eh ?

how's their reputation by the way ?
www.tradestation.com

I will be happy to answer your questions but you should start with a little research.
  • #19
  • Sep 22, 2007 10:14pm Sep 22, 2007 10:14pm
many thanks once again.........nice to see a kind-willing-to-help veteran here...........
  • #20
  • Sep 22, 2007 10:54pm Sep 22, 2007 10:54pm
Findcount

I just started exploring tradestion also. If you don't find all the info you need on the site map you can begin an online account application. Here you'll find links to more info that is specific to the type of account you're applying for.
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