Maximize Trailing Stop and Multiple Lot Techniques

This article will explain two techniques that are a bit more advanced: How does Trailing Stop and how to maximize profits by Trading Multiple Lots.

Let us discuss with some of the lot in advance ...
Because as a trader, we certainly always want to minimize risk as much as possible, therefore note the following caveat: any time a trader added a lot in trade, then it will get a lot more risk. This is probably still in just one trading, but trading lot size clearly plays a role.

For example, if a trader opens one trade with a 100 pip stop, they took the risk of 100 pips. If they open the same trading again, but with a three-position, the greater the risk taken, being 300 pips. Most importantly, make sure that the size of your account you can overcome these additional risks.

Here is a quick way to make a commitment that ...
A trader must not put a risk more than 5% of his/her trading account at one time. When switch 10 k lot, one pip, depending on the pair is used, valued at approximately $1. So, stop 300 pips will be equivalent to the risk of $300. If we divide $300 by 0.05, we'll get $6000. That means if you have an account in the amount of $6000, you should not take risks worth $300.
Such trading might still be made, but with some adjustments in accordance with the size of the trading or the size of your account. A trading lot size could either made smaller or upgrade your account.

The move to implement a strategy ...
The images below in this case, can be interpreted very widely, let's see chart 1 GBPNZD hours earlier to see how we can apply the strategy of a Trailing Stop and Multiple Lots.



Here's how we'll discontinue Trail ...
Because the pair in the trending down, we could be entering the trading with SELL 3 positions 10 k at the point labeled "Short Entry". The price has been penetrated and the stop will be placed in the level "Stop 1". As prices continue to move in accordance with our desires and is below the level of the second Green support, we will shut down one of three of our position by moving the stop at level "Stop 2".

By doing so, we have been locking up gains of around 110 pips.

We have also put a stop above new resistance level so that the two open positions we are protected. Moreover, since the trail we are now under the current note, if the pair back up, we've got a small profit on the two remaining open positions coupled with the 110 pips we get with closed position first. At this point, we've removed all the risk from this trade.

As prices continue to move according to the wishes of us, making the price drop and the lowest position when moving lower, below the support level of the next green, we will close one position again to lock in a profit of about 310 points at one movement and move the stop at level "Stop 3".
As in the case above, we have been locking up more profits and by following our steps toward the next level of resistance, we protect "floating profit" in the third position was left open.

At the last open position we will only continue to trail the stop using the same method as above. When price is no longer continues to fall and is low, we will stop at a certain point when the couple back.

So, as the price moves through the support level of the next green, we will stop the stop at level "Stop 4".

We can see that the prices do not continue to move down, as the price has gone down, we stopped at the level of "Stop 4". Since the third position opened when we cease trading, with profit of 320 pips above the last 10 k.

Overall, the total profit on the three lots is 740 points.

If one lot has been placed on trade, the benefits will reach 320 pips. Now, don't get me wrong, 320 pip does not mean to look down. However, given the choice, we'll choose 740 points.

From this example, the potential benefits of a trailing stop and multiple lots manually is quite clear.

As always, when trying something for the first time, be sure to test this concept on demo accounts a few times until you really understand the process.