Hey fellow traders! Today, let's dive into the world of trailing stops with MetaTrader 4. If you're looking to enhance your trading strategy, this tool is a must-have.
The trailing stop feature manages all your open orders seamlessly. If your target profit isn’t met, it simply holds the line and waits it out. This makes it a great option for both manual traders and those using automated systems that don’t have this functionality built-in.
Once your desired profit level is hit, it sets a drawdown percentage. Let’s break it down: imagine you’ve set a minimum profit of £1,000 and a drawdown of 20%. If your orders reach that £1,000 profit but then drop to £800, the trailing stop will close them out. Now, if the price keeps climbing and hits £2,000, your drawdown adjusts to allow for a profit drop of £400. So, in this scenario, your trades would close netting you a total profit of £1,600. Keep in mind, there’s no fixed drawdown limit since using absolute values can be counterproductive.
Now, here’s a little tip: you can set the drawdown percentage to 0% to act as a total take profit. On the flip side, if you set it to 100%, it will function as a breakeven point. Just be careful, as closing some trades might lead others to turn into losses!
Important Note! The Expert Advisor operates independently of incoming quotes, except for the first one. If you need to tweak the parameters while trading or change the chart/timeframe, make sure to disable the EA using the button. And always double-check its status after any updates!
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