TRAILING STOP

One thing that I love about FXCM is that they have (relatively recently) added the ability to trail stops automatically against the trade you have entered. This is a wonderful feature that is very useful for a few types of strategies. Unfortunately not all brokers have automatic trailing stops, and those that do have different ways that they are implemented. ACM, the broker whose platform I am showing you here does have an automatic trailing stop, except that it is a separate order, thus you can’t tie it in with an Entry order (IF DONE OCO). Oh well, here is what it is and how it works (with them). You simply set a Stop order (as you’ve learned earlier) except here you have an additional option to set how many pips behind the market it is to trail. If for example you were to set a trailing stop behind your long trade (going up) for say 30 pips, then as the market moves up your stop will automatically readjust itself to remain that far away, so if the market eventually reverses you would get stopped out about 30 pips away from where the market peaked. Here is what an order box looks like for this type of order: