The 5 Best Startling Trailing Stop Loss Magic That Works.

Startling trailing stop loss is a post written for the advantage of both day trading and position trading.

Have you ever tried getting in early into a trade and you regret not making a maximum profit by getting out too early with minimum profit?

If yes, then this post is a must for you to read

The startling technique used by professional traders to ride this massive trend is by using a trailing stop loss.

What is trailing stop loss?

Do you know what a stop loss is?

Definitely!

Let’s get started while I unveil these 5 best startling trailing stop loss magic.

What is a Trailing Stop Loss?

A trailing stop loss is a type of technique used majorly in day trading to lock in more profits as the market price moves in one’s favor.

A trader only looks to exit the trade when the market price reverses only in a particular/ calculated move.

Using a trailing stop loss is simply, monitoring and changing the initial stop loss value of the price of an asset as the price keeps moving in favor of the order.

Trailing stop loss example, let’s say, a trader bought EURUSD at 1.1295, and expected a maximum or target profit to be at 1.1360.

The trader’s stop-loss was at 1.1280, as the market price of EURUSD increased towards the targeted profit.

Hence, the trader keeps changing the stop loss value upwards to first reduce the losses, then to price break, even that is price entry, and then to a small profit, and so on until the targeted profit hits.

Trailing Stop Loss vs Stop Loss

The major difference between a stop loss and a trailing stop loss is how the trader keeps modifying the stop loss value as the price goes in his favor.

With the stop-loss approach, the trader does not modify stop loss but only in trailing stop loss.

Have you ever tried using a trailing stop loss and getting out of trade so soon?

If yes

The 5 best startling trailing stop loss magic that works is a complete guide for you.

The 5 Best Startling Trailing Stop Loss Magic That works

These 5 best startling trailing stop loss magic that works are techniques employed by professional traders to lock in more profits and enjoy the massive trends.

Many brokers provide different options for trailing stop-loss orders.

Some brokers have large trailing stop-loss orders while some traders allow minimal trailing stop-loss orders.

Anyways, a trader should allow good space for trailing orders to breathe.

Benefits of using a trailing stop loss

1. It limits significant loss

2. It enables massive profit

3. It makes a trader stay longer in a trading position and thereby creating more chances for opening more positions.

Moving Average Startling Trailing Stop Loss Technique

The moving average is a good indicator that can be used to trail stop loss because it’s a line chart that follows the pattern of the market trend.

 For both trailing stop loss MT4 or trailing stop loss MT5, this technique can be used by manually modifying the price of the stop loss in the direction of the trend.

The two major moving averages used for trailing stop loss are the 20 SMA and 50SMA.

The 20 SMA for short trends and the 50 SMA for longer trends.

The best time to close trade positions while using these two powerful moving averages is when price closes below them when riding the uptrend or when price closes above them when riding the downtrend.

The 200 SMA can also be used for higher time frames.

Note: When the moving average indicators do not align with the market trend kindly choose another technique from the other 4 techniques below.

Market Structure Startling Trailing Stop Loss Technique

The market structure comprises both uptrends and downtrends; the uptrends consist of higher highs and higher lows while the downtrend consists of lower highs and lower lows.

To use market structure to trail a stop loss in an uptrend, the previous swing low (below the previous higher low) is used as the next stop-loss level as the price moves into new higher highs.

For a downtrend, above the previous lower high is used as the new stop loss level as the price moves lower in favor of the trader.   

Note: Trailing stop loss strategy is not advisable for a ranging market but rather a stop loss only strategy. Trades should be closed when the price moves against these calculated moves.

Percentage Change Startling Trailing Stop Loss Technique

Here, a certain percentage is calculated for the stop loss and this value is in return used for trailing stop loss as the market price moves in the direction predicted.

This percentage could be 10%, 15%, or more based on how volatile the asset is or the liquidity of this asset.

This technique can be employed in cryptocurrency, the stock market, and also forex market (such as metals and indices).

Exit trades when the price drops to the calculated percentage.

What is a good trailing stop loss percentage?

You would have to work on the percentage that best suits your style of trading.

You could opt for a 10% or more depending on the volatility of the asset.

ATR Startling Trailing Stop Loss Technique

The average true range measures volatility and thus makes it significant a technique that can be used in trailing stop loss.

I use the 20-period Average True Range

Use a multiple of the average to range as your trailing stop loss

I prefer using 5x when the volatility of the asset is high and I use 2x when the volatility of the asset is low

In a buy trade, minus the ATR value from the previous high and thus use as the trailing stop loss.

In a sell trade, add the ATR value to the low of the previous candlestick and thus use the value as the trailing stop loss.

Exit trades when price move against your value.

Price Action Startling Trailing Stop Loss Technique

There could be times when price moves very to peaks and from one peak to another like almost a shoot to the top.

The best idea of a trailing stop loss strategy for this different and unique market move is modifying the stop loss to the next highs of the previous candle in a LONG trade and to the next lows of the previous candle in a SHORT trade.

Do not give in to too much open space between candles so as not to lose some profits or even some money.

How best do you use a trailing stop loss?

First, you must identify the trend

Second of all, you have to use the best strategy that works for you.

What is the best trailing stop loss strategy?

Only the one that best works for you with constant back-tests and forward-tests.

The disadvantages of trailing stop loss are staying longer or shorter than your intended plan in the market.

Conclusion

 

The 5 best startling trailing stop loss magic that works has opened your eyes to a never-losing strategy that guarantees a constant win ratio and should be abiding by the rules to maximize profit.

We await some questions from you.