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How to use trailing stop loss in MT5 for beginners
When it comes to mastering MetaTrader 5 (MT5), the ability to manage your trades efficiently can mean the difference between consistent gains and unnecessary losses. One of the most powerful tools available to traders — yet often misunderstood by beginners — is the Trailing Stop Loss. It’s a dynamic risk management feature that can lock in profits automatically while letting your trades breathe.
This guide is designed to take you from zero to mastery in understanding and applying Trailing Stop Loss in MT5 effectively, confidently, and strategically.
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🚀 What Is a Trailing Stop Loss?
A Trailing Stop Loss is a moving stop order that follows your trade as it becomes profitable. Instead of placing a static stop loss, a trailing stop dynamically adjusts based on market movement in your favor, ensuring profits are secured while still giving your trade space to grow.
Think of it as a “smart” stop loss. It only moves in the direction of your profit and never moves backward. Once the price pulls back by a set distance (called the trailing stop distance), the position is automatically closed.
🧠 Why Use a Trailing Stop Instead of a Regular Stop Loss?
Here’s what makes a trailing stop loss superior in many situations:
🔐 Locks in profits without the need to constantly monitor the trade
📈 Adapts to market movements as they go in your favor
💹 Maximizes gains while minimizing potential losses
💼 Perfect for trending markets where the price steadily moves in one direction
⏰ Saves time and emotions, eliminating the need for manual adjustments
📲 Setting Up a Trailing Stop in MT5 (Step-by-Step)
Let’s walk through how to actually apply a trailing stop on MT5, whether you're using a demo or live account.
✅ Step 1: Open a Trade
Go to New Order
Set your trade parameters: volume, symbol, stop loss (optional), take profit (optional)
Click Buy or Sell
✅ Step 2: Right-click on Your Open Trade
Go to the ‘Trade’ tab at the bottom of MT5
Right-click on your open position
Select Trailing Stop from the menu
✅ Step 3: Choose Your Trailing Stop Distance
You’ll see some default options like:
15 points
20 points
50 pointsOr select ‘Custom’ and input your preferred point distance (e.g. 100 points = 10 pips if using 5-digit brokers).
Once chosen, MT5 will automatically track the price. When it moves in your favor by the set distance, your stop loss moves too. If price reverses by that distance, the trade closes.
🧪 Example of a Trailing Stop in Action
Let’s say you opened a Buy trade on EUR/USD at 1.1000, with a trailing stop of 50 points (5 pips).
Price rises to 1.1050 → Your stop loss shifts from no SL to 1.1000
Price rises to 1.1100 → Your stop loss shifts to 1.1050
Price falls back to 1.1050 → Trade closes with +50 pips profit locked
No manual interference. Just smart, automated profit-locking.
🧩 Key Trailing Stop Settings You Must Know
Minimum trailing stop: Depends on the broker and instrument. Some symbols require at least 15-30 points.
Trailing distance: Too tight may trigger early exits; too loose may miss profit locking.
Execution: Trailing stops are executed client-side, so MT5 must stay open and connected for it to work.
⚠️ Common Mistakes Beginners Make with Trailing Stops
🛑 Using too small a trailing stop: If your stop is too close to market volatility, it will trigger unnecessarily.
🛑 Not understanding how points work: MT5 uses points, not pips. 10 points = 1 pip (on 5-digit quotes).
🛑 Assuming it works when MT5 is closed: Since trailing stops are client-side, MT5 must remain open and online for them to function.
🛑 Applying it too early: Give the market room to breathe. Apply it once price is comfortably in your favor.
🎯 When to Use Trailing Stops
Trailing stops work best when:
📊 Trading strong trendsThey’re perfect for trades that develop momentum over time.
⏱️ You can't monitor the tradeLet MT5 do the work in your absence.
📉 You want to reduce emotional exitsIt keeps your decision-making mechanical and precise.
💵 You’re scalping or day tradingCapture quick gains without compromising risk control.
🛠️ Advanced Tips for Using Trailing Stops Effectively
🔍 Combine with Indicators
Pair trailing stops with indicators like Moving Averages, ATR, or Parabolic SAR for dynamic management based on volatility.
💡 Use EA for Automated Trailing
You can use Expert Advisors (EAs) to handle more complex trailing stop logic like:
Stepped trailing (move SL every X pips)
Partial trailing (trail after 50% of TP hit)
🧬 Scale Trailing Based on Trade Size
Use tighter trailing stops for high-volume trades and looser ones for longer-term swing trades.
🔒 Trailing Stop vs Break-Even Strategy
Many beginners confuse break-even with trailing stops. Here’s how they differ:
Break-even moves SL to entry price once a certain profit is reached
Trailing stop moves SL continuously as price risesCombine both: Set BE at +10 pips, trailing from +20 pips onward. Smart and safe.
Read more:
💭 Final Thoughts: Is Trailing Stop a Must-Have for Beginners?
Absolutely.While trading without a trailing stop can be tempting in the hopes of "bigger" gains, it often exposes traders to avoidable reversals. A trailing stop is your bodyguard in the financial battlefield — not aggressive, but protective.
Used wisely, it helps secure profits, minimize risk, and boost confidence, even for new traders.
✍️ Conclusion
Using a Trailing Stop Loss in MT5 isn't just about clicking a button — it’s about creating a disciplined trading strategy that works with the market, not against it. As a beginner, you now have the knowledge to implement this tool smartly, maximize your trades, and evolve into a more professional trader.
📌 Remember: Simplicity wins in Forex. Trailing stops keep things simple while delivering powerful risk management.
Keep your trades protected. Let profits run. You’re not trading blindly anymore — you’re trading with intention. 💪
