Part 2: Trailing Stops - Practical

Agenda

• Order Types (Trailing Stop if Bid/Offered)

• Placing a Trailing Stop on the SaxoTrader 2

• Setting Distance to Market and Trailing Stop price

Trailing StopTrailing Stop if Bid

Trailing Stop if Offered

Choose your Order Type

• Trailing Stop

• Trailing Stop if Bid

• Trailing Stop if Offered

Widening of Bid-Offer Spread

Offer line

Bid line

Widening of Bid-Offer Spread

Offer line

Bid line

226.30

• Trailing Stop if Bid – recommended if you are placing a trailing stop to buy.

• Trailing Stop if Bid – recommended if you are placing a trailing stop to buy.

• Trailing Stop if Offered – recommended if you are placing a trailing stop to sell.

Placing a Trailing Stop on the SaxoTrader 2

Placing a Trailing Stop through the Account Summary (on an existing position)

If you want to add a related Trailing Stop Order to a current open position, this can be done through your Account Summary by click on the red Stop Loss box (circled below):

You will then see the following box:

Placing a Trailing Stop through the Forex Orders Module (on a new position)If you want to place a brand new entry order and related Trailing Stop Order:

• Forex Orders Module • Prices and Trade box

You will then get the following box to place a related 3-way order:

Setting your Distance to Market and Trailing Stop

Price

3 ways to set Distance to Market and Trailing Stop Price

1 – Choose the Distance to Market, and the Trailing Stop Price will adjust automatically

3 ways to set Distance to Market and Trailing Stop Price

1 – Choose the Distance to Market, and the Trailing Stop Price will adjust automatically

2 – Choose the Trailing Stop Price, and the Distance to Market will adjust automatically

3 ways to set Distance to Market and Trailing Stop Price

1 – Choose the Distance to Market, and the Trailing Stop Price will adjust automatically

2 – Choose the Trailing Stop Price, and the Distance to Market will adjust automatically

3 – Choose the Distance to Market and the Trailing Stop Price independently of each other

1. Choose the Distance to Market• Specify Distance to Market• Trailing Stop Price will

automatically adjust

1,400001,39980

1,397000,00300

1. Choose the Distance to Market• Specify Distance to Market• Trailing Stop Price will

automatically adjust

For example:

Assume EURUSD current price = 1.4000

You choose the Distance to Market = 30 pips

The Trailing Stop Price will automatically = 1.3970 (1.4000-0.0030)

1,400001,39980

1,397000,00300

2. Choose the Trailing Stop Price• Click once on black bar• Specify Trailing Stop Price• Distance to Market will

automatically adjust

1,400001,39980

1,397000,00300

2. Choose the Trailing Stop Price• Click once on black bar• Specify Trailing Stop Price• Distance to Market will

automatically adjust

For example:

Assume EURUSD current price = 1.4000

You choose the Trailing Stop Price = 1.3970

The Distance to Market will automatically = 30 pips (1.4000-1.3970)

1,400001,39980

1,397000,00300

3. Choose the DTM and Trailing Stop Price independently• Click a second time on black bar• Specify Distance to Market• Specify Trailing Stop Price

1,400001,39980

1,39700

0,00450

3. Choose the DTM and Trailing Stop Price independently• Click a second time on black bar• Specify Distance to Market• Specify Trailing Stop Price

For example:

Assume EURUSD current price = 1.4000

You choose the Trailing Stop Price = 1.3970

You choose the Distance to Market = 45 pips

In this case, the Trailing Stop price starts out 30 pips away from the market, and will not get triggered to move again until the current market is at least 45 pips above the stop price. 1,400001,39980

1,39700

0,00450

You can view, change or cancel your Trailing Stop in your Open Orders module.

Summary

• Order Types (Trailing Stop if Bid/Offered)

• Placing a Trailing Stop on the SaxoTrader 2

• Setting Distance to Market and Trailing Stop price