Trailing Stop Loss

📉 What is a Trailing Stop Loss and Why You Should Use It After TP1?

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In trading, protecting your capital is just as important as making profits. That’s where a Trailing Stop Loss (TSL) comes in—especially once your trade hits the first Take Profit (TP1).

If you’re following our signals, you’ll often see trades with multiple TP levels. Once TP1 is reached, it’s not just about celebrating a win—it’s time to protect the gains and manage the trade smartly. That’s when activating a trailing stop becomes a powerful risk management tool.

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What is a Trailing Stop Loss?

A Trailing Stop Loss is a dynamic stop loss that moves automatically with the price in your favor. Unlike a fixed stop loss, it “trails” behind the market as it moves up (or down, in the case of a short trade). If the market reverses by a certain distance, the trade closes at the new stop loss level.

🔁 How It Works:

• You set a trailing distance, say 20 pips.
• If the market moves up 20 pips, your SL also moves up 20 pips.
• If the market keeps going in your favor, the SL continues to follow at a 20-pip distance.
• If the price reverses by more than 20 pips, the trade closes automatically.

This allows you to lock in profits while leaving room for the trade to continue performing.

Why Use Trailing Stop Loss After TP1?

In our Trade With UD signal strategy, TP1 is often a reaction zone. That means price may:

• Reverse,
• Consolidate,
• Or continue to TP2 or TP3.

Using a Trailing Stop Loss after TP1 gives you three major advantages:

✅ 1. Secures Partial Profits

Once TP1 hits, you’ve already made a win. A trailing stop ensures that if the market reverses, you still walk away with gains, instead of watching them vanish.

✅ 2. Removes Emotional Decision-Making

You no longer have to manually adjust stop losses. Trailing stops automate the logic, allowing you to stay disciplined and let the market decide.

✅ 3. Rides the Full Trend

Trailing stops are ideal for letting winners run. If price continues to TP2 or TP3 (which often happens in trending markets), your trailing SL moves along and keeps securing more profit.

How to Set Up a Trailing Stop Loss

Most platforms like MT5, TradingView, or your broker’s app allow TSL setup with just a few steps.

On MT5:

1. Right-click your open trade.
2. Click on “Trailing Stop”.
3. Choose the pip distance (e.g., 20 pips / 200 points).
4. Done. Your SL now follows the market automatically.

💡 Tip: Choose a trailing stop distance that fits the volatility of the pair. Gold may need more pips than EUR/USD.

Real Signal Example:

Let’s say you got this signal from us:

• BUY XAU/USD @ 2310
• TP1: 2315
• TP2: 2322
• TP3: 2330
• SL: 2305

After price hits TP1 (2315):

• You activate a Trailing Stop Loss at 20 pips.
• Price continues up to 2322.
• Your trailing SL is now near 2318.
• If price reverses, your trade closes in profit.
• If price keeps going, your SL keeps following.

Even if price fails to hit TP3, you’re out with a gain, not a loss.

Final Thoughts

Using a Trailing Stop Loss after TP1 isn’t just smart—it’s essential if you want to trade consistently and profitably over time. It allows you to be in the market with confidence, knowing that your profits are protected and your downside is minimized.

Whether you’re using our Forex, Gold, or Crypto signals, make this small tweak to your risk management and watch how it transforms your results.