How does a trailing stop work?

let say iam poting buy at 1.1400 and my stop at 1.1300

and my traling 80 pips

a/ let say the price move to1.1450
were my stop now? does it move?

b/ let say the price move to 1.1480
were my stop now?

c/ let say the price move to1.1500
were mt stop now?

d/ let say rhe price move to 1.1570
were my stop now?


pk thise tralig confusing

When u put 80 pip Trailstop. Your stop is 80 pips away. For every pip increase your stop will move up by a pip. Say u start with 80 pip trail. Price goes up by 1 pip the tanks to hit your trail. You would lose 79 pips

it is not posibol to put let say fix stoploss 100 pips and traling stop 80 pips?(together)

Hi,

Try a % trailing stop. Initially, have a fixed stop in case the trade does not become profitable at all.

If the trade becomes profitable (I am talking hypothetical here since I don't know the avg. length and RR structure of your trades), calc. the difference between the entry price and largest distance the price went into profit, devide it by 2, add that value to your entry price as your trailing stop.

Every time the price exceeds that that distance (between entry price and highest profit point) repeat the calc. and move the trailing stop accordingly.

regards
daytrading

hi.i'm new and i have some questions regarding trailing stops. i downloaded 3 different EAs for tstops and either they dont work or i just dont understand the principle behind trailing stops. when i go long @ 1.6440 for example and set tp 1.6470 and sl: 1.4620 . if i set TRAILING STOP at 5 pips does that mean that when my the price mvoes to 1.6445 my stop will be moved to 1.6425 ? because thats what i understand . somehow the EAs that i use do not move the SL even when the price goes 10-20 pips in my favor. i dont know why. i mean i have enabled them of course the problem is with my perception or with the settings that i use for TS. i will be very grateful if someone can post a good EA for TS that he or she is using and it works and if you can just take a second and explain to me the parameters in just 2-3 sentences. thank you very much and i am looking forward to you reply !

No.
If you set a 5 pip trailing stop, then your stop is already at 1.6435.

If the price moves 5 pips in your favor, you now have a stop at break even.

5 pips is way too close of a stop anyway.

In your example you have a 20 pip hard stop. (1.6420) If you set a 25 pip trailing stop, then when the price moves 5 pips your way, the hard stop and trailing stop will both be at 1.6420, After that, as the price continues to move your way, your trailing stop will keep moving higher and higher as the price moves higher and higher.

In your example, if you set a 20 pip hard stop, and a 20 pip trailing stop, then when the price moves 5 pips your trailing stop would then be at 1.6425

price, thank you very much that is exaclty what i was asking for and you explained perfectly. i want to know just one more thing. do most of the traders rely on just MT4 or their platform for this trailng stop or use EA ? and does the trailing stop from MT4 move pip-by pip. thanks