<!DOCTYPE html>Trailing Stop Loss — How It Works & When to Use It | MixFunded

Education · Risk Management

Trailing stops: protecting winners.

A trailing stop moves with price in your favour and never backwards. It locks in profit — if it's set with room to breathe.

Three ways to trail.

  • Fixed distance: a set number of pips behind price (MT5 has this built in).
  • ATR-based: 1.5–3× ATR behind price, so the stop adapts to volatility.
  • Structure: move the stop under each new higher low (or above each lower high).

Setting it in MT5.

Right-click an open position → Trailing stop → choose the distance. Note: MT5's built-in trailing runs only while your terminal is open.

Common mistakes.

  • Trailing too tight and getting stopped out by normal noise.
  • Starting to trail before the trade has moved at least 1R.
  • Forgetting that open profit still counts toward drawdown until the trade closes.
Preguntas frecuentes

Preguntas frecuentes.

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