Forex Trading Expert Advisors (EA or automated trading system) and Custom Indicators (CI) for MetaTrader Platform.

Trade Management, how to make adjustments as your trade moves in your favor, has become a hot topic in recent LIVE webinars.

One of the methods that I personally employ when managing a trade is trailing the stop manually.

The chart below will walk you through the process of manually trailing the stop on a trade as price advances in an uptrend on this EURUSD 4 hour chart…

The trade begins when a trader takes a long position based on a Slow Stochastics crossover signaling a buy. When the trade is entered at that point, the stop is located at the level labeled “Initial Stop”.

As the trade progresses to the upside, and as price action takes out each successive high, the stop is moved up to the next higher low.

Looking at the chart for example, when price moves above the high labeled #1, the stop is moved from the Initial Stop level to Stop #1. As price takes out the next high at #2, the stop is trailed from Stop #1 to Stop #2. This procedure continues as long as price continues to advance and make higher highs and higher lows.

We can see, however, that price retraces below Stop #4 thereby taking the trader out of the trade with a profit of about 325 pips.

Even though the retracement took out the previous low at Stop #4, the uptrend on the pair is still intact.

With that in mind, the trader can re-enter the trade when price takes out the previous high at #5. When price trades above that high, the stop would then be placed below the previous low at Stop #5.

When price takes out the next high at #6, the entire process begins again.

Trailing a stop in trading can be a very effective strategy to “lock in” profit as the trade progresses… in this case to the upside. It is important, however, not trail the stop too closely behind the current price at which the pair is trading. This method of manually trailing the stop based on the previous low in an uptrend provides the trader with a critical guideline. While it certainly will not prevent stop outs, it will permit the trade to have a bit more room in which to develop.

In the case of a downtrend, the strategy would be reversed as the pair made lower highs and lower lows.

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Trailing stop can be phenomenal useful option if are a whole course of action trader. The key most distant compasses of the trailing stop is to manufacture your room surge as the market moves, without the essential for you to intercede and change. The trailing stop respect enables you to pass on after cases with a security you support of, that you don't need to screen reliably. I in like manner use trailing stop if imperative. There are many brokers that don't allow trailing stop in restrain pips as their spreads is high. In any case, can set trailing stop at whatever point with FXPM as its spreads is low as low as 0.1 pip.

I don’t want to recommend Forex4you broker for traders as they are a cheapest one in forex market. I have faced problems in every single trade. Even they don’t solve issues in right time and gives so many excuses. They just want you to deposit more and more. I was very uncomfortable with them as they did not allow me for scalping. If you don’t want to get scam then avoid them.

Forex Trading is a good investment, but you need to have a backup plan to support your future trades.

A trailing stop is considered to be a modification of a typical stop order that could be set at a defined percentage or dollar amount away from a security's present market price.