Trailing Stops
Lock in profits as the market moves in your favor. Trailing stops follow price action using candle structure, not arbitrary tick distances.
What Are Trailing Stops?
A trailing stop is a stop loss that moves with the market. As price moves in your favor, the stop "trails" behind, protecting your gains. If price reverses, you exit with profit instead of watching winners turn into losers.
How TradingPlace Trails Differently
Most platforms trail by a fixed tick distance. TradingPlace uses candle structure instead:
- For longs: Stop trails below the low of closed candles
- For shorts: Stop trails above the high of closed candles
- You choose the timeframe: 1-minute or 5-minute candles
- Offset distance is configurable (e.g., 2 ticks below the candle low)
Why Candle Structure?
Fixed-tick trails get stopped out by normal market noise. Candle-based trails respect market structure - they only move when price actually closes at a new level.
Fixed-tick trails get stopped out by normal market noise. Candle-based trails respect market structure - they only move when price actually closes at a new level.
Trailing vs Fixed Stops
| Scenario | Fixed Stop | Trailing Stop |
|---|---|---|
| Strong trend | Leaves money on the table | Captures extended moves |
| Quick reversal | Protects your entry | May give back some profit |
| Choppy action | Clear risk/reward | May get stopped prematurely |
| News spike | Holds through volatility | Locks in gains quickly |
Configuring Trailing Stops
Enable trailing stops when entering a trade or in position settings:
- Toggle Trailing Stop to on
- Select timeframe: 1m or 5m
- Set Offset (ticks below/above candle)
- Optionally set a Activation Threshold (only start trailing after X points profit)
Tip: Don't Trail Too Tight
An offset of 1-2 ticks will get stopped by normal wicks. Start with 4-6 ticks on ES/MES for breathing room.
An offset of 1-2 ticks will get stopped by normal wicks. Start with 4-6 ticks on ES/MES for breathing room.
When to Use Trailing Stops
- Trending markets - Let winners run without babysitting
- Breakout trades - Capture the move, exit on first pullback
- End of day - Protect gains as market close approaches
- Stepping away - Automated protection when you can't watch the screen
When Fixed Stops Are Better
- Mean reversion trades - You have a specific target, not riding a trend
- High-volatility events - Trails get whipped around during news
- Scalping - Quick in-and-out trades with defined targets