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How to use trailing?

  • #1
  • First Post: Jun 22, 2006 2:10am Jun 22, 2006 2:10am
Hi.
I am really new to trading. Could anybody tell me how to use trailing stop?
Some example would be appreciated.
Thanks
  • #2
  • Jun 22, 2006 7:10am Jun 22, 2006 7:10am
A trailing stop is just a stop that moves with the market price.

Let's say you buy long at price A and set a 20 pip trailing stop. If the price goes to A+20 then the stop moves to break even for you. As the price goes up the stop goes up.

If the price goes up to price B your stop would be at B-20. If the price goes down the stop stays in place and if the price keeps going down for 20 pips, it hits your stop and your out.

The advantage is that you don't have to sit there and watch it and move the stop yourself. The disadvantage is if it retraces unexpectidly you are out. That may be what you want. If it is, use a TS. If not, sit there and watch it like a hawk and move your stops by hand.

I hope that helps.
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #3
  • Jun 22, 2006 9:02am Jun 22, 2006 9:02am
trailing stops are very valuable, as a noob myself i concur
CRAIGSLIST BARTERING CHAMPION
  • #4
  • Jun 22, 2006 9:31am Jun 22, 2006 9:31am
Quoting bus4s2v
Hi.
I am really new to trading. Could anybody tell me how to use trailing stop?
Some example would be appreciated.
Thanks
availability of automatic trailing stop depends on your broker.
  • #5
  • Jun 22, 2006 1:24pm Jun 22, 2006 1:24pm
Quoting bus4s2v
Hi.
I am really new to trading. Could anybody tell me how to use trailing stop?
Some example would be appreciated.
Thanks
It's a manual system but I like to use it to set stops as price moves.
I'm trading the Knife system (4hr chart) but once things get moving I switch to 1 hr or 30 min chart and normally adjust my S/L to about 2 PSAR points away from the indicator's current actual spot. I also look at Price Action to determine how far to trail my stop if I want to move to break even or minimise potential loss.
It's also quite nice to get confirmation that your planned trade is developing. By that I mean with the Knife you're sometimes looking 1 or 2 candles ahead for an entry and because of the way PSAR works (price & time) if the PSAR spots are getting progressively closer to real price without a realistic chance of you hitting your buy or sell points, I might think of moving onto a different pair.
If you've not used this before try the default setting (0.02, 0.20) before playing around. Mine are set to 0.05, 0.50 as this was what I was going to use to enter trades before I came to my senses and studied the Knife Method. I still like to see the PSAR though. It is the only indicator on my 4 hr charts.
Peter
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  • #6
  • Jun 22, 2006 2:01pm Jun 22, 2006 2:01pm
How ru doing using the knife system...Just wondering what is is and how to find out......I'm a nebie ,,,can't u tell











Quoting PeterFM
It's a manual system but I like to use it to set stops as price moves.
I'm trading the Knife system (4hr chart) but once things get moving I switch to 1 hr or 30 min chart and normally adjust my S/L to about 2 PSAR points away from the indicator's current actual spot. I also look at Price Action to determine how far to trail my stop if I want to move to break even or minimise potential loss.
It's also quite nice to get confirmation that your planned trade is developing. By that I mean with the Knife you're sometimes looking 1 or 2 candles ahead for an entry and because of the way PSAR works (price & time) if the PSAR spots are getting progressively closer to real price without a realistic chance of you hitting your buy or sell points, I might think of moving onto a different pair.
If you've not used this before try the default setting (0.02, 0.20) before playing around. Mine are set to 0.05, 0.50 as this was what I was going to use to enter trades before I came to my senses and studied the Knife Method. I still like to see the PSAR though. It is the only indicator on my 4 hr charts.
Peter
  • #7
  • Jun 22, 2006 2:14pm Jun 22, 2006 2:14pm
Quoting alsup1955
How ru doing using the knife system...Just wondering what is is and how to find out......I'm a nebie ,,,can't u tell
Hi alsup (by the way is that your birthday 1955 )
The Knife is one of the methods covered in the James Group Private Forum.
You could join, dive straight in and start trading BUT I would advise you first to look around the free area particularly here
http://www.forexfactory.com/forexfor...ead.php?t=2331
There's a load of stuff in there that will make a whole load of difference to your trading when you get going.
I'll warn you now (from one newbie to another) you MUST have patience. If you try to run before you walk you'll end up losing money quicker than you think. Everyone's idea of being a newbie is different so I apologise if what I've just said sounds patronising but the whole essence of this forum is to prevent people getting hurt or hurting themselves.
I can't explain the Knife as the method is in the paid-for area, but it is the work of serious, time-served traders, who have found a thing that minimises the risks, and that's all we can ask.
Take care and ask as many questions as you like, someone will step up to the mark and give you the right answer (even if you don't understand it first time round .
Pete
  • #8
  • Jun 22, 2006 2:39pm Jun 22, 2006 2:39pm
Hi

A question from a newbe!

Can somebody explain what a parabolic SAR is, how it is calculated and how to decide upon the parameters. And also do many of you guys use it as a trailing stop ... I plotted it ... it looks pretty good as a trailing stop but a bit spikey ... can it be smoothed?

Many Thanks again

Paul
  • #9
  • Jun 22, 2006 4:08pm Jun 22, 2006 4:08pm
Quoting pmurfin
Hi

A question from a newbe!

Can somebody explain what a parabolic SAR is, how it is calculated and how to decide upon the parameters. And also do many of you guys use it as a trailing stop ... I plotted it ... it looks pretty good as a trailing stop but a bit spikey ... can it be smoothed?

Many Thanks again

Paul
Hi Paul
Click here http://stockcharts.com/education/Ind...ic_ParaSAR.htm

Have a read and then come back and re-read my earlier post
http://www.forexfactory.com/forexfor...51&postcount=5

I'll help all I can but put it on your chart first and try and understand what it's telling you. As far as I know not many people use it for trading signals but is good for trend confirmation and trailing stop settings
Peter
  • #10
  • May 1, 2017 9:21am May 1, 2017 9:21am
Trailing stop means, book your profit! I see, few traders are using trailing stop trading tool instead of stop loss! Even though I use both of them but till now stop loss is my 1st choice! For NFP news trading, I like to use trailing stop, because market moves in one direction during NFP news!
  • #11
  • May 3, 2017 9:39pm May 3, 2017 9:39pm
When trail-stopping, I always use the last confirmed peak/valley in the D1 chart ...
Market is not random but unpredictable
  • #12
  • May 5, 2017 9:17am May 5, 2017 9:17am
There are many expert advisors in the market that can do that for you automatically.
  • #13
  • Jul 14, 2017 10:02am Jul 14, 2017 10:02am
Quoting hondakorn
trailing stops are very valuable, as a noob myself i concur
I think, it depends on your strategy and plan! Like, I don’t use trailing stop in my trading because, in order to my plan I need to work with only SL and TP! Even, I don’t close my trade manually! But, no doubt trailing stop is useful.
  • #14
  • Jul 14, 2017 11:51pm Jul 14, 2017 11:51pm
You have to use logic with trailing stops so the price can do small reversals without taking you out.

One method I have seen is done by using the PSAR. Recommend settings 0.1 / 1.0. Use the dot as your trailing stop, within reason.

Another technique is to place your stop at the lowest/highest value of the last 3 candles. Move it as each new candle starts.
You cannot be extraordinary by being normal
  • #15
  • Jul 27, 2017 12:14pm Jul 27, 2017 12:14pm
To be honest, trailling stop is a very useful thing, but it may be difficult for a newbie. In a word, trailing helps to withdraw the deal into the stoploss but it's quite difficult to tune it and pick the right size.
  • #16
  • Last Post: Aug 30, 2017 9:40am Aug 30, 2017 9:40am
Quoting bus4s2v
Hi. I am really new to trading. Could anybody tell me how to use trailing stop? Some example would be appreciated. Thanks
I see, you already got your answer! According to me; don’t use trailing stop in the beginning stage of your trades. When you booked enough number of pips, then you can take risk of trailing stop; during high voltage news I mainly use trailing stop.
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