Risk Management is an important part in the system development process. Forex Strategy Builder has a number of unique ways to assign risk controls, including a trailing stop limit, basic stop loss, day / night stop loss, and reversal stop. Each characteristic or parameter within the stop can be customised and adapted.
Trailing Stop Limit
The trailing stop limit allows the user to have a system, which when profitable locks in gains by sliding the stop loss higher. In effect, if a trade is in profit, the system will calculate the degree of difference between the current price and the trailing stop limit level. This stop ‘distance’ will be kept at all times and will only change if the position continues to be profitable. If the trade turns negative, then the trailing stop limit will lock in at the current level. An effective way of not limiting profit potential, the trailing stop limit can also be used as a take profit setting. The Trailing Stop Limit is a custom indicator and must be downloaded separately. Please contact your account manager for further details. [Read more...]