Trailing Stop Logic

Trailing Stop Logic - A dynamic method for protecting profits by moving the stop-loss level as the trade becomes profitable. A trailing stop “sequentially shifts Stop Loss at a better price as the favorable trend continues”. In code, this typically runs on each tick (or bar) and modifies the stop if price has advanced.

• Definition: Automated adjustment of the stop-loss to lock in gains. E.g. “move SL to breakeven after 20 pips profit, then trail by 10 pips.”

• Context: Often implemented in OnTick() or with a loop checking current price vs. last adjusted level. In MQL5, one might use a custom trailing stop class (as shown in the MQL5 AlgoBook). In NinjaScript or cAlgo, one can use built-in trailing stop methods or manual logic.

• Example Pseudo-code (MQL5):

  // Called every tick in OnTick(): for(each open position) { double newStop = SymbolInfoDouble(_Symbol, SYMBOL_BID) - trailPips*Point; if(newStop > PositionGetDouble(POSITION_PRICE_OPEN) + trailPips*Point) trade.PositionModify(positionTicket, newStop, currentTakeProfit); }

• Example (NinjaScript):

  // NinjaScript has built-in methods, e.g.: SetTrailStop(CalculationMode.Pips, 20);

  This tells NinjaTrader to automatically update the stop as price moves.