Quote from increasenow:
okay...it may be that I am understanding trailing stops incorrectly...
Example:
Eur/USd at 1.4400
at the moment initiate sell eurusd at 1.4400...stop is at 1.4450 and put in trailing stop of 'step' of 30 and 'distance' of 10...my 'overall' profit target is 1.4350...so hoping at worse, profit would be like 20 ...am I off here...?thanks...
I think I get it, so you set an initial stop at 1.4450 and your trade has to go 30 pips into profit before the trailing stop kicks in, and then it trails 10 pips behind price locking in a minimum of 20 pips, is that right? Apparently you have to leave your platform running and connected for trailing stops to work on IBFX, you know that right?
I guess it depends on your strategy and how you decide entries and exits. Ideally you want to place your stop at a level or price which if reached means the trade is no longer valid, in other words if price reaches xyz it means your analysis was wrong so you may as well exit the trade.
Did you decide on the 30 and 10 settings by guess work or are they decided on your market analysis?
Whatever you do, don't trade without a stop, seriously. It might go ok a few times but eventually you'll get into deep shit and suffer a major loss or margin call. Have wider stops by all means, and reduce trade size so that your dollar risk is the same, but no stops at all really is a fools game.
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