Many of us have committed the common mistake of allowing our profits to turn into losses simply because we did not stop loss or exit fast enough. The reason is simple – blind hope. We hope that the forex price will bounce back and our profits would resume its upward trajectory. But, that did not happen. Fortunately, with ForexHero’s Advanced Bot, you can now set Trailing Stop Loss (TSL) to prevent this from happening. 

But, what is a Trailing Stop Loss?

Before we explain what is a TSL, we need to know what is a Stop Loss. A Stop Loss is simply a price level that when reached will cause the bot to sell your forex holding. For example, if you set the SL for forex instrument A at $100 and if the price of A drops from, $110 to $100, the bot will sell all of your A forex instrument. A Trailing Stop Loss is a dynamically moving SL price. TSL will always move upwards as the price of the forex increases. How much and when does the TSL price changes, depends on the TSL settings.

In this tutorial, we will guide you through on how to setup a TSL. ForexHero’s user friend interface has made this process extremely easy for new and advanced traders alike.

Step I

Configure the Advanced Bot to trade on your selected forex instrument, set the Fund Allocation and the Entry Conditions.

Step II

In the Exit Condition tab, select either the Fixed or Variable Trailing Stop Loss option in the Stop Loss drop down list box. Read Step III to know the difference between the two types of Trailing Stop Loss.

Step III

Consider when you want the Stop Loss level to move dynamically as the price of the forex instrument appreciates. ForexHero offers both Fixed Trailing Stop Loss and Variable Trailing Stop Loss. You can use Fixed if you just want the stop loss level to keep moving at a consistent interval. Otherwise, if you feel that the forex that you are trading has a high volatility, you may want to consider Variable Stop Loss. A tight Stop Loss level the moment you make a profit and then perhaps, a larger interval for subsequent Stop Loss levels. 

Step IV

Click the Create Bot button after you are done

Conclusion

As you can see, ForexHero makes it very easy for you to configure Trailing Stop Loss strategy. This strategy allows you to capture profits if the forex price is to reverse its direction. There are many other strategies offered by ForexHero that our users can configure easily. 

In case you have not read, do check out our articles on setting up a Dollar Cost Averaging (DCA) strategy with ForexHero.