How does the trailing SL work?
Sejpalsinh Jadeja Original Post
AlgoDelta Team
How does the trailing SL work?
What should I fill in for:
- Trail Trigger
- Trail Gap
- Trail Point
Posted Jun 3
- Trailing Stop Loss (SL) automatically moves your stop loss in the profit direction as the price moves in your favor. <h3>Example</h3> Suppose you buy a stock at ₹1000. You want: - Initial SL = ₹900 (₹100 risk) - Trail Trigger = ₹100 - Trail Gap = ₹50 - Trail Point = ₹50 <h3>Settings</h3> <table> <thead> <tr> <th>Field</th> <th>Value</th> </tr> </thead> <tbody> <tr> <td>Trail Trigger</td> <td>₹100</td> </tr> <tr> <td>Trail Gap</td> <td>₹50</td> </tr> <tr> <td>Trail Point</td> <td>₹50</td> </tr> </tbody> </table> <h3>How it works</h3> <h4>Step 1: Entry</h4> - Buy at ₹1000 - Initial SL = ₹900 <h4>Step 2: Price reaches ₹1100</h4> - Profit = ₹100 - Trail Trigger (₹100) is hit - SL moves up by Trail Point (₹50) New SL = ₹950 <h4>Step 3: Price reaches ₹1150</h4> - Price moved another ₹50 (Trail Gap) - SL moves up by another ₹50 New SL = ₹1000 (breakeven) <h4>Step 4: Price reaches ₹1200</h4> - Another ₹50 move - SL moves up by ₹50 New SL = ₹1050 <h4>Step 5: Price reaches ₹1250</h4> - Another ₹ – Sejpalsinh Jadeja Team Jun 3