1. Introduction #

A Trailing Stop Loss (TSL) is an advanced risk management feature that automatically adjusts the stop loss as the market moves in your favor. Unlike a fixed stop loss, a trailing stop dynamically locks in profits while allowing the trade to remain open as long as the market moves favorably.

This document provides a structured guide on how to configure trailing stop loss settings, including different types such as Dollar (from Entry Price), Percentage, Ticks, and Total Profit/Loss. Each section covers configuration parameters, calculation details, and real-world examples to help traders effectively manage their trades.

For a visual walkthrough, refer to the accompanying video:

2. Trailing Stop Loss Settings #

(Common for Dollar (From Entry Price), Percentage, Ticks, Total Profit/Loss)

2.1 Symbol and Quantity #

• Symbol: NQ
• Quantity: 10 Contracts

2.2 Trailing Stop Loss in Point / Dollar (From Entry Price) #

2.2.1 Trail Stop Loss Configuration #

• Do You Want Trail Stop Loss?:
  • Option: YES / NO
  • Purpose: Enables or disables the trailing stop loss feature.
• Trail Stop Loss Type:
  • Type: Point / Dollar (From Entry Price)
• Trail Stop Loss Value:
  • Value: Points / USD below the current price after the trailing stop activates

Example:

• Current Price: 100
• Trail Stop Loss Value: 20 points
• Once activated, the stop loss will always stay 20 points below the current price.
• Trail Trigger Value:
  • Value: How much the price must move in your favor before the trailing stop activates

Example:

• Trail Trigger Value: 5 points
• Price must reach 105 (100 + 5 points) for the trailing stop to activate.
• Trail Frequency Value:
  • Value: How much the price must move in your favor for each trailing stop update

Example:

• Trail Frequency Value: 2 points
• Once the trailing stop activates at 105:
  • At 105: Stop loss sets to 105 – 20 = 85
  • At 107: Price moves up 2 points → Stop loss adjusts to 107 – 20 = 87
  • At 109: Another 2-point move → Stop loss updates to 109 – 20 = 89
  • If the price reverses and hits 89, the position closes and locks in the profit/loss.

2.3 Calculation Details for Point / Dollar #

Each field (Stop Loss, Take Profit, Trail Trigger, Trail Frequency) has a small question mark (?) icon next to it.

When you click the icon, it opens a “Calculation Details” popup, showing:

• The Formula Used
• The Values Entered by the User
• The Final Calculation Result

Trail Trigger in USD Calculation:

• Formula: Result = Trail Trigger USD × Lot Size × Quantity
• Example Calculation: 2 × 20 × 10 = $400.00

2.4 Trailing Stop Loss in Ticks #

2.4.1 Trail Stop Loss Configuration #

• Do You Want Trail Stop Loss?:
  • Option: YES / NO
  • Purpose: Enables or disables the trailing stop loss feature.
• Trail Stop Loss Type:
  • Type: TICKS
• Trail Stop Loss Value:
  • Value: Number of ticks below the current price after the trailing stop activates

Example:

• 1 Tick Value: $10 per contract
• Trail Stop Loss Value: 8 ticks
• Once activated, the stop loss will always stay 8 ticks below the current price.
• Total Loss for 10 Contracts: 8 ticks × $10 × 10 = $800 total loss
• Trail Trigger Value:
  • Value: How much the price must move in your favor (in ticks) before the trailing stop activates

Example:

• Trail Trigger Value: 10 ticks
• The trailing stop will only activate when the price moves 10 ticks in your favor.
• Total Profit for 10 Contracts: 10 ticks × $10 × 10 = $1,000 total profit
• Trail Frequency Value:
  • Value: How often the stop loss updates in ticks (i.e., how much price must move in your favor for each trailing stop adjustment)

Example:

• Trail Frequency Value: 2 ticks
• Once the trailing stop activates:
  • At 10 ticks in profit: Stop loss sets to Current Price – 8 ticks
  • At 12 ticks in profit: Price moves up 2 ticks → Stop loss adjusts by 2 ticks
  • At 14 ticks in profit: Another 2-tick move → Stop loss updates again
  • If the price reverses and hits the adjusted stop loss → The position closes, locking in the profit or loss
• Example Profit: 2 Ticks = $100 total profit for 10 contracts

2.5 Calculation Details for Ticks #

Each field (Stop Loss, Take Profit, Trail Trigger, Trail Frequency) has a small question mark (?) icon next to it.

When you click the icon, it opens a “Calculation Details” popup, showing:

• The Formula Used
• The Values Entered by the User
• The Final Calculation Result

Trail Trigger Calculation:

• Formula: Result = Trail Trigger × Lot Size × Min Tick × Quantity
• Example Calculation: 2 × 20 × 0.25 × 10 = $400.00