Hi Daniel,
The “Maximum Daily Loss”, located in the Expert Advisors properties box, is a trailing stop!
The problem with trailing stops if they are set too close to the price action the following can occur:
Petko has been trading Expert Advisors for many years and has tested many strategies. He has determined that over many trades, not just the one or two discussed recently in the forum, it is more profitable not to use trailing stops. The reason for this is when an Expert Advisor goes through a period of draw down and is closed by the trailing stop the trade does not have the opportunity to continue higher and close out with a profit. It is true once in awhile the trailing stop can keep a trade from closing with a loss but over many trades it is still more profitable not to use trailing stops.
It is also possible to setup a trailing stop on your own. All you need to do is right click on the stop loss dotted line on the trading chart and select Trailing Stop. You can then select the number of points you want to use as a trailing stop. The trailing stop will then start changing at the beginning of each new price bar / candle.
Alan,
Alan,