Talking about trailing stop loss orders, savy forex currency traders whom have been trading for some time come to understand that the markets at times can trend fast in one direction and then retrace just as fast back toward the opposite direction. These traders realize that there has to be a way to protect oneself and profit from these fast price movements.
This is where trailing stop techniques can solve these issues. Just recently I was searching the web for free trailing-stop-loss ea's when I came across a commercial software that offers eleven different exit strategies called ForexTrailer.
Sure this software does cost money, but at least you know that it has
instructional content on how to use any of it's eleven different take
profit or exit strategies. The free versions most of the time don't have
adequate software instructions and a lot of time can be wasted trying
to figure out what some of the various option fields are for.
ForexTrailer, it's good to know that there are so many different stop
loss strategies included in the one software. That makes life so much
easier when it comes to testing out different types of exit strategies.
Traders always seem to like to try different strategies in different
The MT4 EA allows for exit strategies that
include; Moving average trailing stop, trail stop on prior bar high or
low, trail stop on x number of prior bars, trail stop only if bearish /
bullish price formation, average true range, parabolic SAR, average true
range, trail by number of pips, time stop, trail by equity and trail
based on channel.
Funny thing to say is that each of these stop-loss strategies will produce profits. However, they will not
work all the time in all types of market conditions. It's a matter of
applying the right exit strategy to a particular currency pair,
appropriate time frame and market condition. ie Different currencies
move differently based on liquidity / supply and demand as well as when
world economic events unfold.
I also forgot to mention that
with this semi automated EA it is also possible to close orders on a
partial basis. For example you can set it to close out 50% of your
position if you chose, thus assisting with money management principles.