Does trailing stop work correctly?
We set the trailing stop only in case the position already has a profit exceeding the trailing stop level in points, and in case the new level of the stop is better than the previous.
...EURCAD drops about 10pips and then heads up... Platform TS plays by the above rule. So the order would only set the Ts when your profit >16*Pips. So it didn't close because you didn't have any Ts set at that time. It could have moved up to the heavens and order would still not close. Set a StopLoss order instead.
...although BBG shows a high of 1.3864... Forex is de-centralized. Different platforms have different prices. Mines showed high of 1.3858.
...I should be stopped out at 1.3806. I am actually stopped out at 1.3814... I cannot answer this question without knowing more about your platform and what happened at the time. However, from what I see, all this happened quickly. My guess is that the minimum-stop distance may have increased by the broker.
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Just started using MT4, so perhaps I am not using the trailing stop correctly...
I sold EURCAD at 1.3824 on Jul 6 at 23:24 (GMT??) and put on a 16pip trailing stop (right-mouse click on trade, chose Trailing Stop, 16pips).
EURCAD drops about 10pips and then heads up, to a high of 1.3860 around 8:30 according to MT4 data (although BBG shows a high of 1.3864, but let's deal with one issue at a time), which means I should have been stopped out a while ago...but I wasn't. Which turns out is good for me because EURCAD then drops, down to a low of 1.3790 and then begins to head up again. With my 16pip trailing stop still in place, I should be stopped out at 1.3806. I am actually stopped out at 1.3814 (bid/ask spread???).
What happened? Am I using the trailing stop properly? I see from the user guide that trailing stops are not active when my terminal is off (i.e. when I log out of MT4), but I was logged in overnight so the trailing stop should have been triggered.
Thanks.