Trailing Stop Loss

Understanding the Strategy Page - Trailing Stop Loss

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Written by Josh
Updated over a week ago

Trailing Stop Loss (or TSL) in an order that allows traders to set a percent or amount (nominal value) of which under it, the position will be closed. That means that when prices increase, the stop loss does as well — “trailing” it. That way, as an investor, you can take advantage of the potential upsides of your investments while protecting yourself from the possible downsides.

On the Capitalise Platform, you can use trailing stop loss only per hit. Keep in mind that this is different from the total stop loss feature, which allows you to input a stop loss for the entire strategy. 

When setting up an exit strategy, you can use the trailing stop loss feature by using the operator “at trailing stop” before adding the nominal amount or percentage desired. 

For example, you could write something like “close position at trailing stop of $10,” which would close the trade at any point when the hit’s P/L drops by $10.

Or, you could define it as a percentage by writing “close position at trailing stop of 10%,” which would close the trade when the hit’s P/L loses 10 percentage points. In this scenario, a drop from 30% P/L to 20% P/L would trigger the trailing stop loss.

Combine trailing stop loss with other conditions for loss and/or profit to get the most from it. So, for instance, you could type something like "Close position if the profit is at $100 or the loss is at $30 or at trailing stop of $20."

The trailing stop loss can also be combined with any other condition you wish to set in the exit strategy, using other operators such as “crosses above/below” and technical indicators. You can easily combine all these different conditions by using the operators “or” or “and.”

*The final P/L is not guaranteed

*Please note that all screenshots and examples are only shown for the purpose of a technical demonstration and should not in any way be construed as recommending any type of trading strategy and they do not constitute any form of advice. Please click here for further explanation

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