Following the trend on Forex while you’re out
Here’s an example of TrackStopShort (sorry for the slow download of the image), my trend tracking code applied to today’s GBPUSD. I entered the trade quite early and closed half of it to lock in some profit. Then I started TrackStopShort and left it to follow the trend as I was talking to a customer for a few hours. When I looked back I saw this. Now it’s time to leave the office, but I’ll let the script run and see how much it made tomorrow.
Update: TrackStopShort exited the trade at 21:06 with a EUR 410 profit, just before the trend bottommed out at 1.6430. If you have bought Magic Lines, you can get the TrackStoploss scripts for free. Just e-mail…
FAQ: “Why can’t I just use a trailing stoploss?”
Answer: You can, but you are likely to be taken out by any retracement or when choosing a large distance stoploss order, by trend reversal…you lose EUR 50-100 at least.
In what way is TrackStopLoss different from a well placed trailing stop? Can you give an example?
A trailing stoploss with fixed pip distance does not take into account the dominance of a certain move in the market. It will just follow blindly on a certain distance. When the distance is too small you will be taken out on the first retracement. When the distance is too big, you will lose valuable pips after market reversals. TrackStopLoss only follows dominant moves in the trend and rests during hesitating market conditions. This means less take-out during retracements, close follow and close ending when the trend reaches the maximum or minimum.