How to use trailing stop loss to lock in floating profits in currency futures trading?

The trailing stop loss locks in profits through dynamic adjustment. First, it is set according to the percentage retracement. For example, when the 5% retracement occurs, the system triggers the closing of the position at the highest price × (1-5%); second, combined with the 10-day moving average, long positions set the stop loss below the moving average and moves up with the trend; third, the ATR indicator is used, with an interval of 1.5 to 2 times the ATR value, and the stop loss point is recalculated when the price breaks the extreme value.

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Trailing stop loss is an effective tool for managing floating profits in currency contract trading. It dynamically adjusts the stop loss position to follow favorable price changes.

1. Set trailing stop loss based on percentage retracement

This method sets a percentage threshold for price retracement and automatically raises the stop loss level when the price rises, ensuring that most profits are locked in when the reverse price movement reaches the threshold.

1. Select the "Advanced Order" or "Trailing Stop" function of the trading platform.

2. Enter the drawdown ratio you want to protect profits, such as 5% .

3. The system will automatically calculate the stop loss trigger price based on the highest point of the latest transaction price. The formula is: highest price × (1 - 5%).

4. When the market price falls from the high point to the set 5%, the system automatically submits a closing order.

2. Use technical indicators to dynamically adjust stop loss levels

Setting a moving stop loss in combination with technical indicators such as moving averages can better adapt to changes in market trends and avoid being triggered out of the market by short-term price fluctuations.

1. Add a short-term moving average on the chart, such as the 10-day moving average .

2. Set the reference base of the trailing stop loss to the moving average value.

3. For long positions, set the stop loss position at a certain distance below the 10-day moving average.

4. As the price and the moving average move up simultaneously, the stop loss position is also increased accordingly, until the price falls below the moving average and triggers the stop loss.

3. Use the ATR indicator to set the dynamic stop loss distance

Using the average true range (ATR) indicator can scientifically set the stop loss distance based on the current market volatility, and is suitable for assets with different degrees of volatility.

1. Calculate the ATR value of the current market, and the period is usually set to 14.

2. Determine the multiple of ATR as the stop loss interval. The common range is 1.5 to 2 times ATR .

3. Set the trigger condition of the trailing stop loss as: the latest price is lower than (when going long) or higher than (when going short) the highest/lowest price minus/plus the ATR multiple value.

4. Whenever the price reaches a new high or a new low, the system will recalculate the stop loss trigger point based on the new extreme value.

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