We all know how to set up a stop loss on a trade and we typically use 1% of our account equity as a guideline, to safeguard our account capital.

Free FX Trading Signals from Valutrades: www.valutrades.com/en/trading-signals

However, once your position goes into profit, it’s a great feeling but you may not have the time to manage the trade.

As well, you may not be confident that price action will reach the take profit level.

For this, you can use the Trailing Stop.

In the MT4 Terminal, simply right-click on the position and select Trailing Stop.

Depending on the time frame you may select any number of Points when the Trailing Stop starts to follow price action.

Don’t forget, there are 10 Points in 1 Pip.

The Trailing Stop only starts to work when your trade is in profit and will only move in the direction of the position: either Buy or Sell.

Here, in this time-lapse video, we can see how the Trailing Stop follows the price and then closes the position when price action reverses, locking in the profit.

You need to experiment with different levels in the Trailing Stop and be aware of the timeframe you are trading and the current volatility of the market.

Happy trading with Valutrades and we will see you soon.

CFDs and FX are leveraged products and your capital may be at risk.

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