# simple explaination for TRAILING STEP pls (example included)

hi

i know this is a very common question , " what is trailing step ? "

i have also done many research about it but if you google it you will see that every resource explained it very complicated for newbie'z

may i ask you please imagine example below and explain its function with this simple example :

lets say i entered a BUY position in EURUSD @ price 1.0000 and suddenly price goes high (like 1.0060) as soon as i entered

TP and SL are set to +- 100 pips

SL = 0.9900

TP : 1.0100

i set the trailing stop to +50 pips , meaning that if price goes to 1.0060 then SL will move to 1.0050

i dont know whats step function is used for but lets say we set it to 20 pips

would you pls explain what will happen with step set to 20 in this example ?

thanks

What is for you the base to calculate the new SL?

1. fmax(SL,actual bid - 100 points)?
2. actual SL + n points e.g. per bar?
3. ...

The trailing step is the range by which a favourable price needs to advance, before a trailing stop is updated.

So if the trailing stop is 100 pips and the trailing step is 20 pips, then every time the price moves favourably 20 pips from the previous "step" level, then the stop-loss is updated to be 100 pips from the current price "step" level.

Example, assuming no take-profit and only a trailing stop-loss

• @1.0000, SL: 0.9900
• @1.0005, SL: 0.9900 (no change)
• @1.0015, SL: 0.9900 (no change)
• @1.0020, SL: 0.9920
• @1.0030, SL: 0.9920 (no change)
• @1.0040, SL: 0.9940
• @1.0060, SL: 0.9960
• @1.0080, SL: 0.9980
• @1.0100, SL: 1.0000 (break-even)
• @1.0120, SL: 1.0020
• etc.

thanks for your explaination , crystal clear
Reason: