1. What is a Trailing Stop Loss?
A Trailing Stop Loss is a risk management feature that allows you to minimize your risk by specifying a percentage in distance that you want TigerBot to trail the trade at. A Trailing Stop Loss is similar to a Normal Stop Loss, but instead of being based on the opening price, the Trailing Stop Loss is based on the most profitable price at any given point in the trade.
The Trailing Stop Loss will begin at the specified distance from the opening price, but then it will trail in your favor as the trade moves in a favorable direction. For example, if you enable a Trailing Stop Loss at 5%, it means that you are telling TigerBot to follow your trade at a 5% distance from the most profitable price. TigerBot will then close all your trades as soon as they hit a 5% dip from the best price in the trade. This will guard your trades from any loss greater than the percentage that you specify, end even enable you to lock in profits as your trades move in a profitable direction.
2. How to Enable a Trailing Stop Loss
To enable a Trailing Stop Loss, load the Inputs Window on your current TigerBot solution, and then click on the drop down box titled “Stop Loss” until you see all the available Stop Loss options listed. Then, select the option titled “Trailing Stop Loss” from the list.
3. How to Configure a Trailing Stop Loss
To configure your Trailing Stop Loss, simply type a number in the text box titled “Stop Loss % (For Normal and Trailing Stops)” that represents what percent (in loss) you want TigerBot to trail all trades at. The below example shows a Trailing Stop Loss enabled and specified for a 10% trail on all trades.
4. What a Properly Configured Trailing Stop Loss Looks Like
After you configure your Trailing Stop Loss, select the “OK” button at the bottom of the inputs window, and allow a few seconds for the chart to update, you should see a clear, thick orange line at the border of every Loss Zone that designates when each trade closes.