What are trailing stops and does MT4 offer them?
The most basic technique for establishing an appropriate exit point is the trailing-stop technique. Very simply, the trailing stop maintains a stop-loss order at a precise percentage below the market price (or above, in the case of a short position). The stop-loss order is adjusted continually based on fluctuations in the market price, always maintaining the same percentage below (or above) the market price. Deciding what constitutes appropriate profits (or acceptable losses) is perhaps the most difficult aspect of establishing a trailing-stop system for your disciplined trading decisions. Setting your trailing-stop percentage can be done using a relatively vague approach rather than precise precepts. MT does have trailing stops included (go to Terminal – Trade tab – right click with the mouse on any trade and select Trailing stops). The most important thing to know is that the Trailing Stop has to be in profit for the number of specified pips before it gets activated.
