Money Management

Using Money Management

If you are trading EUR/USD and your position moves in your favour by 20 pips the trailing stop loss can push the stop loss higher by your desired amount.

Let’s say you would like to move your stop loss up by 10 pips every time the market moved up 30 pips. Every 30 pips higher the market moves your stop would move 10 pips higher. This ensures that if the market moves at great speed or velocity you can take profit on that one particular trade at the highest pullback point.

If you had a rigid stop loss and target, the profit and a stop loss would never move. The trailing stop loss is more dynamic in nature and sometimes lead to more profit being taken.

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