# How does MT4 trailstop work

760

Yes i know that you can make any variations of the trailstop put into a script or EA, but i`m curious how the built -in trailstop work.

So for example:

if i enter long at ask 1.2345 , and the stoploss is 20 pips (1.2325), but the trailstop is 10 pips then after the price goes to 1.2346 the new sl becomes 1.2336 to align with the TS which is smaller than the SL?

So does it trail the stop no matter what or it only trails after the price moved 11 pips, as in another example if the price would have moved to 1.2356 then the new SL becomes 1.2345?

Of course this is in a no spread situation, because the price is closed at bid price in this example, so the SL may be at that level but actually the price will be closed at bid level.

1401

Price 1.2345

Trailing stop 15 pips.

1.2345 + 15 = 1.2360

When price hits 1.2361, trailing stops will then triggered and move the SL to 1.2346

If the price hits 1.2362, SL moved to 1.2347 and so on.

760

deysmacro:

Price 1.2345

Trailing stop 15 pips.

1.2345 + 15 = 1.2360

When price hits 1.2361, trailing stops will then triggered and move the SL to 1.2346

If the price hits 1.2362, SL moved to 1.2347 and so on.

Yes so the trail stop is actually a simple SL which follows price and moves parallel with it, so if the TS is 15 pips then the distance between the current price and the SL will always be 15 pips.

I thought i works like it moves the SL every 15 pips to 15 pips, but i guess its not.

Anyhow thanks for info.

Moderator
10359

Proximus:

Yes so the trail stop is actually a simple SL which follows price and moves parallel with it, so if the TS is 15 pips then the distance between the current price and the SL will always be 15 pips.

I thought i works like it moves the SL every 15 pips to 15 pips, but i guess its not.

Anyhow thanks for info.

No, the TS only kicks in when the trade is x pips in profit. Then it will trail by x pips from the highest profit l
Proximus:

, so if the TS is 15 pips then the distance between the current price and the SL will always be 15 pips.

If this was the case, it would be impossible for the TS to be hit.
15304

 GumRai: If this was the case, it would be impossible for the TS to be hit. TS only moves up (for a buy.) If the market starts moving down, SL does not move.