Trailing forex trailing stop let forex traders lock-in profits as well as reduce the overall risks of trades as they advance. A trailing stop protects profits by allowing a winning trade to remain open for as long as possible. By choosing the right stop parameters, your mechanical trading system can manage trailing stops to maximize profits in any forex market. Trailing stops can ensure that you’re able to stay in volatile-yet-winning trades long enough to escape with some profit.
For every pip that a well-designed trailing stop algorithm saves in avoiding premature stop-outs, a savvy trader can earn even more from price moves on volatility, as the trade continues favorably onward. If you’re seeking better trading profits, it’s worthwhile to look at some ideas about how to develop a stop-loss and trailing-stop protocol that fits your own market, trading system and style. A stop order is a type of conditional order which is executed once the currency reaches a specified stop price. A stop-loss or trailing stop order for a long forex position is set below the current market price. The stop for a short position is set above the current price.