Five techniques you can use to trail your stop-loss rides.
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0:19 Trailing Stop Loss Technique #1
The first technique that I want to share with you is moving average. By now, I think that you should be familiar that moving average is something that you can use to trail you stop-loss, so, for example, let's say that you went long on the break of this highs over here. The market break of this high over here, and you can trail your stop-loss using this moving average. This is the trending period moving average. So you only exit the trade when the price breaks and closes below it.
2:00 Trailing Stop Loss Technique #2
The second technique is the market structure. So for those of you who are price action traders, you can use the structure of the markets to trail your stop-loss. Here is an example, we can see over here, let's say for example, again you long the break out over here, the market hits higher, retraces right. This is the swing-low, which we can reference to set your stop-loss, so your stop-loss won't go below your swing-low. The market makes a new high, makes a new swing-low, this swing-low you can reference your stop-loss, the market makes a new high, retraces - makes a new swing-low, you can reference it as your stop-loss. The market makes a new swing high, and then it retraces, and finally over here, breaks and closes below the swing low over here, where you exit the trade.
3:54 Trailing Stop Loss Technique #3
The third technique I want to share with you is percentage change. This is very straightforward. Very useful for stock traders. This stock: Alibaba, you can see that it made a high of $110 so what it can do is that it can just use a percentage change to trail a stop-loss.
5:00 Trailing Stop Loss Technique #4
The fourth technique I want to share with you is Average True Range. A very powerful way to trail your stop-losses. Well, how it works, is that, ignore this indicator for a while. So by right now, you know what the A-T-R indicator is, its a measurement of volatility in a market. So if you pull out your A-T-R indicator, it will give you a value. So let's say for example the A-T-R indicator currently shows you, let's say 100 pips for euro dollar.
7:20 Trailing Stop Loss Technique #5
And, lastly right, you can use the previous candle high/low to trail your stop-loss. Let me share with you an example, so if you recall bitcoin, it has been moving pretty strongly over the last of, I'll say 2017. You can see that the market went parabolic over here, the range of the candles got larger and larger. So where you could have trailed your stop-losses is that if the price breaks and close below the previous day low, you'll exit the trade.
A quick recap, the first technique I shared with you is to use the moving average to trail a stop-loss. Or you can use market structure referencing from the swing-high and swing-low to trail your stop-loss. You can use percentage change as well right, if the price drops x percent, you exit the trade. You can use the average true range, slash chandelier stop, to trail your stop-loss, which is based on the volatility of the market. And, last but not least, you can trail based on the previous candle high or low, which is very useful when the market has gone parabolic. Okay, so I have come to the end of this video.
If you want to learn more, go down to my website https://www.tradingwithrayner.com over here at the top, if you want to learn more, for example this video, we focused a lot on exits and trailing stop-loss, if you want to learn about entries, go to my website tradingwithrayner.com, download this guide over here, The Ultimate Guide to Price Action Trading, where you will learn how to better time your entries, and read the price action from the markets. Just click this blue button, and I'll send it to your email address for free! With that said, I have come to the end of this video, any feedback, comment and let me know in the comment section below. If you enjoyed this video hit the like button, subscribe to my YouTube channel, I would really appreciate it, and I will talk to you soon.

By Stock Chat

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27 thoughts on “5 trailing stop loss techniques risk management for traders”
  1. Avataaar/Circle Created with python_avatars Manish Kumar Malhotra says:

    Love from India… ๐Ÿ’•

  2. Avataaar/Circle Created with python_avatars Rume Siloko says:

    Hello sir I wanna thank you so much for changing my life I take my time to watch all your videos and I am a full time trader now in period of 6 months

  3. Avataaar/Circle Created with python_avatars Makin Cash says:

    Do you swing trade or day trade more?

  4. Avataaar/Circle Created with python_avatars NoKRapeepat เธ™เธเธฃเธžเธตเธžเธฑเธ’เธ™เนŒ says:

    Thank you so much.

  5. Avataaar/Circle Created with python_avatars muhaimin ul islam says:

    In there five types of traling stop loss system, which is the best you believe?

  6. Avataaar/Circle Created with python_avatars option seller says:

    Great๐Ÿ‘๐Ÿ‘๐Ÿ‘๐Ÿ‘

  7. Avataaar/Circle Created with python_avatars Omphemetse Moalosi says:

    ๐Ÿ“Œ

    gold nuggets. thank you, Rayner.

  8. Avataaar/Circle Created with python_avatars NepAatma says:

    First asian with weak math

  9. Avataaar/Circle Created with python_avatars Kalasag 911 says:

    Which of the (5) techniques do you think would be best suited for 2x or 3x leveraged ETF? I'm thinking the previous high/low x 1.5 might be a usable approach.

  10. Avataaar/Circle Created with python_avatars Shanu says:

    Very good learnings as always thanksโค๐Ÿ™ Bro

  11. Avataaar/Circle Created with python_avatars Evan McClaugherty says:

    Thank you for all your videos, youโ€™ve helped me a lot. ๐Ÿ˜Ž

  12. Avataaar/Circle Created with python_avatars Mangesh Bankar says:

    my entry point is perfect but exit not perfect. how can i train my mind for trailing stoploss.

  13. Avataaar/Circle Created with python_avatars Daryl Hong says:

    Hi its me again Rayner thank you for the insights given in the video. Trailing SL can actually be aiding the active stop loss like trailing SL can be seen as a passive SL to help decide whether to continue the position or close the position and tp

  14. Avataaar/Circle Created with python_avatars Hieu Nhu Dinh says:

    hello bro, thankyou for sharring. How can i Using trailing stop on mt4 mobile app ? Please help me

  15. Avataaar/Circle Created with python_avatars ALions Mentality says:

    Is there a way to use method 5 with the hot key?

  16. Avataaar/Circle Created with python_avatars Jake Condemn says:

    I have a question to protect a trailing stop loss. I had a trailjng stop loss set at 15%, but there was a huge downward tail that force my stop loss then it jumped back up massively. Is there a way to protect against that?

  17. Avataaar/Circle Created with python_avatars Paul Zeng says:

    Thanks for sharing your video!

    I wonder if you've given thought to this strategy: often traders lose money because their stop loss gets hit and then later, the prices cross back up but the trader is no longer in the trade. What if you can implement an automated algo trading strategy where when a stop loss is hit and the trade liquidates, then immediately send a limit order with the same or a similar price that the stop loss executed at? This new limit order can be seen in the Brokerageโ€™s GUI, and the trader can manually cancel it if he wants to.

    Thanks in advance for your response ๐Ÿ™‚

  18. Avataaar/Circle Created with python_avatars trig33kgirl says:

    This was very helpful thanks.

  19. Avataaar/Circle Created with python_avatars Lawalson Iyiola says:

    Who knew Bitcoin would be 23,000 now. Lol.
    Nice video boss

  20. Avataaar/Circle Created with python_avatars Mike Parker says:

    Best trail stop Ive used is the heiken ashi open price, either the current one or previous candle open

  21. Avataaar/Circle Created with python_avatars Carine Marcelle says:

    Nice video. Thanks.
    How many pips should be the trailing stop?

  22. Avataaar/Circle Created with python_avatars Simranjeet Singh Sran says:

    Thankyou so much brother

  23. Avataaar/Circle Created with python_avatars Joe Mike Taylor says:

    Very good info, would be better if I could understand you, lose info when you talk too fast

  24. Avataaar/Circle Created with python_avatars David Flohr says:

    Hey Rainer how do I put my trailing stop loss at something like an SMA, Iโ€™m using webull and I donโ€™t think it has an option for that, does the broker you use allow you to do that?

  25. Avataaar/Circle Created with python_avatars Armyman says:

    good video

  26. Avataaar/Circle Created with python_avatars ESTHER Stafford says:

    I like it better when I can see you talk. It's difficult without seeing you. IT is great to watch all your videos and educational. Thank you Rayner Teo.

  27. Avataaar/Circle Created with python_avatars mina botros says:

    You the man!

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