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Old 03-25-2007, 03:54 AM
MrPip MrPip is offline
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Locking in profit

Quote:
Originally Posted by MiniMe
;

Sound like it, but how I can lock my profit ? let say
I want to lock the first 40 pips then each time the market moves in my fav the stoploss moved from 40 pips to 50 and so ... so setting the take profit to 0 will enable this option ? and what trailing stop would you recomend ?

Thanks

Alan
Try using type 3 trailing stop. It works as follows.

Default StopLoss is 100.

FirstMove = 20; // Type 3 first level pip gain
FirstStopLoss = 50; // Move Stop to 50

In other words when the trade is up 20 pips move the stop loss to 50 pips lower than current price. If the trade reverses before the next level is reached our loss is half of the original stop loss.

SecondMove = 30; // Type 3 second level pip gain
SecondStopLoss = 29; // Move stop to Breakeven + 1

When the trade has moved 30 pips in our favor we lock in 1 pip by setting the stoploss to 29 pips from the current price. You can use a setting of 25 to lock in 5 pips if you want.

ThirdMove = 40; // type 3 third level pip gain
TrailingStop3 = 20; // Move stop to lock in 20 pips and trail from there

When the trade moves 40 pips the stoploss locks in 20 pips and trails from there pip for pip with a 20 pip trailing stop. If the trade moves to 90 pips and reverses the exit will be at 70 pips.


Of course, you can use any settings you want.

I am in the process of writing a combination trailing stop that will begin by trailing pip for pip until the first level is reached, then use the step method of moving the stop. I might also add a few more levels.

Robert
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