What Is a Trailing Stop on MT5?

Suppose the following: You’re in a trade, and the trend is moving in your favor—great! But how do you prevent giving away those profits if the trend turns around immediately? That’s where a trailing stop comes in handy. Whereas getting out of trades smartly is no less vital than getting into them, in today’s high-speed trading world, few techniques are at once so strong and so overlooked as the trailing stop. For MT5 users, the trailing stop feature is a smart and dynamic way of protecting trades without incessant interference from human fingers. But what is a trailing stop on MT5 and how does one use it?

This article goes into extreme depth regarding the technique and mechanics of MT5 platform trailing stops—equipping new and seasoned traders alike with in-the-trenches information to help take their risk management skills to the next level. Whether you’re looking to curb emotional trading or simply need to let your trades ride without concern, studying this tool can be the difference between trading victory and defeat.

What Is Trailing Stop on MT5?

Visualize this: when the price of your chosen currency pair is going up, your trailing stop adjusts automatically so you can catch the wave of profits. But if the tide turns and prices begin to decline, your trailing stop steps in, closing your position at some predetermined point to lock in your gains.

Seeking a decent risk management and profit-locking system is one of the most important steps in Forex. Trailing stops are something that you may utilize to attain your financial objectives as a professional trader. This method prevents you from getting out of your position while protecting your resources from potential losses. Let’s reduce the risks associated with sudden price movements. How familiar are you with MT5 (MetaTrader 5) platform trailing stops? 

Whether you are new to MT5 or an experienced trader who needs to refine your approach, what is MetaTrader article contains both fundamental concepts and advanced features like EAs and trailing indicators.

3 Features of Trailing Stop to Protect Your Profits

A trailing stop manages risk in a dynamic way by adjusting automatically the stop-loss level as market price moves in your direction. Unlike a fixed stop-loss, it tracks behind the price, locking profits and allowing your trade to ride the strength of leverage upwards.

Key features of this condition eliminate emotional trading by enforcing a strict exit strategy and enable you to customize it to a percentage or dollar amount, which is appropriate for any market condition and your risk tolerance.

Trailing stops bring flexibility, automation, and precision together to enable traders to achieve maximum gains while effectively capping potential losses. Check out the below to know more about its features.

Dynamic Adjustments to Market Movements

Trailing stop is an active stop-loss order that follows positive price action and gives the trade space to develop as well as protect profits on the part of the trader.

• Long Positions: Considering buy options because prices are increasing. The trailing stop in a long position is placed below the current market price. The trailing stop rises as the price rises. On a decline of price by a specified percentage, the trailing stop comes into force, and the position closes.
• Short Positions: Considering sell options because prices are falling. For short positions, the trailing stop is set above the current market price and falls with upward price movement. A switch by a predetermined amount initiates the stop.

Prevention of Emotional Decision-Making

Trailing stops impose discipline by keeping one from making impulsive decisions. Traders lose the sense of knowing when to let profits run and when to close out a trade for a loss. Moreover, as a beginner, It is difficult to decide when to exit the trade. 

A trailing stop prevents this by sticking to a laid-down plan. Once in place, trailing stops operate automatically when the market price moves against the position by the designated amount, thereby preventing the utilization of emotions.

Through the use of a consistent strategy, traders are able to avoid rash moves that may lead to premature exits or lost profit.

Enhanced Risk Management  

By setting predetermined exit points, trailing stop orders help traders to manage risk through automatically closing the position when it is going against the market. With this dynamic approach, traders can let profitable trades run while cutting losses soon.

As the market price moves forward in the direction of the position, the trailing stop traces behind it. When the price reverses by the predetermined amount, the stop is triggered, and the position is closed.

It sets a limit to the maximum loss, ensuring the losses remain within sane levels. This feature of trailing stop allows trades to be left open in profitable trends, earning maximum profit potential. 

How Does Trailing Stop Work?

How do trailing stops work? The automatic trailing stop loss on MT5 becomes active as the price moves toward the trader’s target position. Whenever prices move favorably, the distance of the stop-loss remains unchanged.

On the contrary, when the price reverses and results in a loss, the stop-loss is automatically activated when the position is closed. To allow a trailing stop in MT5 (MetaTrader 5), follow these steps:

• Log in to the MT5 platform

• Navigate to the chart of the financial instrument

• Open the context menu (right-click on the platform)

•  Choose the trading option
• Open a new order

• Click on the Terminal window (at the bottom of the screen)
• Navigate to the Trade tab
• Locate the trade for which you want to set the stop-loss
• Right-click on the trade
• Hover over the trailing stop option in the dropdown menu
• Choose one of the preset values

• Choose Custom
• Enter your desired distance

• Confirm the settings

Using trailing stops has both positive and negative effects on trades. This method allows traders to ride the market’s price movements and protect their profits; however, it may also lead to an early exit from a potentially profitable trade.

Trailing Stop on Profit Expert Advisor

A Trailing Stop on Profit EA (Expert Advisor) is a trading robot that helps traders to lock in profits and allow trades to grow with the trend of the market. Expert Advisors (EAs) are automated MT5 software capable of opening, closing, or modifying trades based on predetermined rules—ideal for traders who enjoy algorithmic trading.

This kind of EA monitors open trades and moves the stop-loss level higher (for long trades) or lower (for short trades) only when the trade has reached a certain level of profit. To configure the EA, you have to consider the start level in pips and check the trailing distance. ( current price and stop loss gap).

Also note that not every broker allows EAs—or may have restrictions.There are thousands of free EAs available online, but not all are reliable. Free EAs may lack support, updates, or risk-management configuration.

Paid EAs may include additional features, proven performance, and better security. Backtest any EA on a demo account first for compatibility, operation, and risk settings. 

When the trade reaches a predetermined figure, the EA starts the trailing stop and moves the stop-loss dynamic as the price goes in the direction of the trader. Using this tool, traders can secure profits without manually adjusting stop-loss levels or being glued to the charts constantly.

It enables more methodical profit-taking by automating and strategizing the exit process. Trailing Stop on Profit EAs are particularly valuable for traders using trend-based trading systems or those looking to limit risk while allowing profits to run.

Properly set, the EA helps traders stay longer in profitable trades and exit trades before the market reverses.

Example of Using a Trailing Stop in a Buy Trade

Imagine putting a buy position on XAUUSD at 2.320.00 and waiting for price movement because of positive market conditions or signals. You have to set a trailing stop of 15 pips for decreasing the risk.

Whenever the XAUUSD increases, the trailing stop will get higher. For example, if the price gets 2.325.00, the trailing stop will shift from 2.318.50 to 2.323.50 (the first price is 15 pips below the entry and the second price is 15 pips below the current price)

So, if the price drops to 2.328.50, your trade will close automatically. The profit will be 8.50 $ an ounce without doing anything special. 

Example of Using a Trailing Stop in a Sell Trade

If you are looking at the EUR/USD currency pair and anticipate that the euro will fall against the U.S. dollar based on future economic releases, you short at 1.0850 hoping that the price will drop.

To restrict risk and maintain possible gains, you set a trailing stop of 20 pips. That is to say if the price goes down in your favor, the stop-loss will track along with it automatically, with a 20-pip cushion left behind.

This is what occurs:

• Enter the sell position at 1.0850 
• Original trailing stop: 1.870 ( 20 pips above the entry) 

 If price decreases to 1.0800, the trailing stop will become 1.0820.  Whenever the market gets near to 1.0820, your trade will close automatically. This method lets you ride declining momentum while automatically locking in profits if the market is going to turn. 

It’s especially well-suited for news releases or strong trends—when the market is moving quickly and you don’t want to have to close manually.

How to Put a Trailing Stop in MT5?

How do you set a trailing stop in MT5? How do you set stop loss (SL) and take profit (TP) on MT5? We will answer these questions below. Setting a trailing stop in MT5 is a simple process. In addition to setting a trailing stop, you can also set take profit and stop loss by following these steps:

• Launch the MT5 platform.
• Log in to your trading account.
• Right-click on the chart.
• Go to the Market Watch window.
• Choose “New Order” (you can also press F9).
• Select your desired order type (buy or sell).
• Enter the desired volume.
• Set the initial stop loss and take profit in the New Order window (stop loss is the price at which the trade will close automatically after reaching the chosen level, while take profit is the price at which the trade will close with a profit).
• Open the trade.
• Go to the Terminal window.
• Navigate to the Trade tab.
• Locate the trade for which you want to set the trailing stop.
• Right-click on the trade.
• Go to the trailing stop option.
• Select one of the preset values.
• Enter your desired distance.
• Confirm the settings.

For professional traders, MT5 has built-in support for custom indicators like the ART. It is an indicator for risk management and locating stop loss points: the ART (Average True Range) trailing stop. What is the ART trailing stop indicator for MT5? This trailing stop loss indicator helps traders determine a suitable distance for the trailing stop.

You can easily use the ART and STP trading indicators by adding them to the chart. Once the ART is added, you can use its value to set the trailing stop distance.

How to Set a Trailing Stop on MT5 Mobile?

There are multiple ways to place your stop loss using the MT5 application. It is very simple to set a trailing stop loss on MT5 for both Android and iOS devices. Here are the step-by-step instructions for both operating systems:

• Open the MT5 application (you need to launch it and log in to your trading account first)
• Select your desired trade
• Choose to buy or sell to open a position
• Go to the trade page
• Click on the open position
• Choose the Modify option
• Set your stop loss or trailing take profit in MT5
• Find the trailing stop option on the Modify page
• Tap on the trailing stop
• Select a preset value or enter your desired value manually
• Confirm the settings

Best Practices for Using Trailing Stop

Let’s assume that you want to sell a position because of a bearish engulfing candle. A bearish engulfing candle, a technical pattern on a chart that can indicate downward reversal. 

Your stop-loss is a condition to avoid losing more money when the market doesn’t move as you expected. In this case, your stop loss will be set above the entry price.

The most effective tip for using trailing stops on MT5 is choosing the appropriate distance while applying the principles of professional trading in the Forex market. This chosen distance should allow you to secure enough profit from natural price movements and prevent unwanted issues or premature closures.

Use analytical tools to establish a suitable distance. Additionally, you can implement other strategies, such as selecting a fixed stop loss to avoid certain losses. These methods enable you to trade under varying market conditions.

Do professional traders use trailing stop-losses? The answer is yes. There are several reasons to use this method as a professional trader:

• Ability to lock in profits during price movements
• Automatic profit securing
• Risk reduction
• Active trade management
• Dynamic response to market conditions
• Prevention of potential losses
• Enhancement of trading strategies

Trending VS Ranging 

Though trailing stops are great tools, they are not quite as good under all conditions.

During a strong uptrend or downtrend, trailing stops can lock in profit and keep trades ongoing longer.

That’s when trailing stops are ideal—since price is still moving in the same direction, and the trailing stop lingers behind at a safe distance. But even in trends, setting a trailing stop too tight will close the trade on minor retracements before the trend resumes. 

For that reason, adjusting the distance—based on volatility and timeframe—is necessary. In range or sideways markets, the price fluctuates little in a narrow range, usually causing trailing stops to close out inappropriately. 

That leads to minor, repetitive losses or in missing the big move once the break of the range has occurred.

Warning: When trading in a choppy market, it is best to employ fixed take-profit and stop-loss points instead of trailing stops—or to use larger trailing distances coupled with volatility indicators in order to avoid whipsaws.

Tips to Optimize Usage of Trailing Stop

 In case of using trailing stop and enhance your trading process, you must consider some points such as:

• Avoid setting trailing stops to tightly
• Place trailing stops based on the asset’s average daily range
• Employ volatility indicators ( Volatility indicators such as ATR or Average True Range help you determine secure stop distances.)
• Periodically adjust and change your trailing stops to accommodate changing market conditions

You also can get help from practical sources like BabyPips which are popular for Forex traders specially beginners. 

Do Not Employ Trailing Stops on High-Impact News Releases

High-impact news releases are prone to sudden price shocks that usually occur with high-impact news releases like:

• NFP (Non-Farm Payrolls)
• CPI (Consumer Price Index)
• FOMC announcements
• Central bank interest rate decisions

In these situations, the market usually makes random and sudden moves, and your trailing stop will be invoked not due to the trend actually reversing, but due to temporary volatility.

Do not use trailing stops for major news releases except if your strategy is geared to manage volatility. Ensure you review the economic calendar (e.g., Forex Factory or MT5 News tab) prior to setting a trailing stop.

If you absolutely must trade during news, take a bigger trailing stop or wait until after the initial shock before triggering.

Sample Strategy

ATR is a measure of volatility in the market, and it’s always helpful for traders to base stop distances on recent price action instead of historical guesses or unsystematic values. This is how you can do that step by step:

• Add ATR to your chart
• On your MT5 platform, utilize the ATR indicator with default 14 period setting.
• Choose your trading time frame. For example, you are trading on the M30 (30 minute) time frame.
• Look at the ATR figure. For instance, let’s say the ATR reads 20 pips. This is a clue that, on average, the price of 20 pips has moved for each 30-minute candle.
• Apply a multiplier. In an attempt to escape being stopped out by normal movement, utilize a multiple of the ATR—most frequently 1.5x to 2x:

1.5 × 20 = 30 pips

2 × 20 = 40 pips

• Allocate your trailing stop distance

Here, a trailing stop of 30–40 pips would be ideal to give your trade enough room to breathe while also protecting profits. Why it works:

• During high volatility, the ATR rises → your stop widens to avoid noise.
• During low volatility, the ATR falls → your stop contracts for tighter risk control.

This method ensures your trailing stop remains dynamic and adjusted to market activity as it is, leading to greater consistency between different assets and trading methods.

Trailing Stop vs Other Profit Management Tools

There are different profit management tools for example, you can use a breakeven stop to eliminate risk once the trade has moved sufficiently in your favor. In case of better understanding about usage of trailing stop vs other tools, you have to check out the below chart: 

How Many Pips Should a Good Trailing Stop-loss Be?

The exact number of pips depends on market movement and your chosen strategy. For an unstable market, 25–30 pips is the correct figure, and 15–20 pips would suffice for a steady market.

Let’s say you have opened a long position at 1200 and trailed a stop of 5 pips. This means that when the price hits 1205, the stop-loss order will shift to the entry level (1200). In case the price continues to move upwards to 1210, the trailing stop will shift to 1205. But if the price falls to 1204 when it moves up to 1210, the trade will be closed automatically, earning a profit of 5 pips.

What Is a Pip in Forex Trading and How to Calculate It?

Based on this example, traders need a trailing stop to secure their profits and prevent losses. Risk management is another reason to use this method, as it allows traders to control the risk of their trades while letting prices movement.

Don’t forget to check the Forex economic calendar before determining any stop loss and take-profit levels. However, these ranges can’t be used in isolation. The ideal trailing stop depends on three key factors and we will explain them in the following parts: 

Timeframe

The number of pips must reflect the chart timeframe you’re trading on. For example:

• Scalping (1M–5M): 5–15 pips may be appropriate.
• Day trading (15M–1H): 15–30 pips.
• Swing trading (4H–Daily): 30–100 pips or more, depending on volatility.

Placing a 15-pip stop on the chart would be too close, and putting 100 pips on the 1-minute chart is lunacy—it would barely ever fire.

Volatility (ATR-Based Distance)

This makes your stop distance adaptive in relation to the current market conditions, so your trailing stop becomes adaptive rather than random.

Trading Style

Scalpers prefer tight trailing stops (5–10 pips or <1x ATR) to restrict the rapid gains.

Day traders may utilize medium stops (10–30 pips or 1–1.5x ATR).

Advantages and Disadvantages of Trailing Stop

Auto stop loss and trailing stop EA MTS has its pros and cons, just like any other method. What are the disadvantages of trailing stops? Below, we outline the advantages and disadvantages in the chart:

Limit the Disadvantages of Trailing Stop 

Although trailing stops have many benefits, their downside can be controlled—if not removed—through the right tools and methods.

Preventing Premature Closes

Trailing stops are likely to close trades too prematurely in volatile or ranging markets. To minimize this you have to utilize the ATR indicator to adjust a trailing stop dynamically based on volatility.

Employ your trailing stop in conjunction with a SuperTrend or Moving Average indicator to limit the direction of the trend before placing or adjusting the stop. also , allow the stop to trail only if the price stays above/below your trend filter.

Using EAs to Manage Trailing Logic

Use an Expert Advisor (EA) that has a trailing stop on profit facility. Such EAs will activate the trailing stop only when a profit level is reached (e.g., 30 pips profit), and this keeps it from being activated in advance during times of market turbulence.

Utilizing Multi-Indicator Confirmation

You can base your trailing stop on more than price action alone. For example:

• Use a Moving Average crossover as a signal to initiate trailing.
• Wait for RSI confirmation before the stop-loss zone tightens.

This approach maintains the stop rational instead of mechanical, minimizing noise-based exits.

Adjusting to Market Conditions

Steer away from universal distances. Instead, vary trailing stop behavior based on the market:

• Trending markets → larger stops, longer duration of the trade.
• Choppy/ranging markets → ponder avoiding trailing or employing tight stop-loss with fixed TP instead.

In general, using the trailing stop on MT5 can help reduce potential risks in your trading experience. If you want to utilize this method effectively and gain profits, consider the following notes:

• Conduct thorough market analysis
• Evaluate market movements before setting the trailing stop
• Pay attention to price patterns and the historical behavior of the market
• Choose the appropriate distance carefully
• Utilize analytical tools like ART
• Implement risk management strategies
• Combine trailing stop conditions with risk management options
• Enhance the security of your trades
• Review market conditions regularly
• Adjust the trailing stop when necessary

Benefits of Using Trailing Stop

Using a trailing stop provides some essential benefits to enhance trade performance and risk management. First, it provides constant protection of profits gained by continuously adjusting the exit price as the market moves in a favorable direction, allowing traders to capitalize on bullish momentum without constant monitoring of positions.

Second, it enforces discipline as it eliminates emotional factors, with decisions to exit trades becoming part of a predetermined strategy rather than random reactions. These benefits make the trailing stop method an integral part of gaining a well-balanced trading experience. 

Common Issues with Trailing Stop

Is trailing stop a good strategy? Although the trailing stop is one of the top trading strategies in the Forex market, it does come with some challenges. While using trailing stops offers many advantages, it can also present a variety of issues. Don’t worry_ every challenge associated with trailing stop on MT5 has a special solution.

Can you lose money with a trailing stop loss? Sometimes, your trade position may close earlier than expected, causing you to miss out on potential profits. This means you might not achieve your desired gains, but you won’t lose your initial capital.

Fortunately, this issue has a solution: you can set the distance using ART, an effective analytical tool.

What if MT5 trailing stop not working? It may happen that your trailing stop doesn’t respond to market price movements, leading to trade closures under unfavorable conditions. This issue can also be addressed.

It is important to consider the variable distances based on technical analysis and pay attention to Forex market predictions. As you may know, trailing stops require continuous monitoring. If you don’t check the market regularly, you could miss out on favorable conditions.

Utilizing push notifications within the MT5 platform or mobile application can help keep you updated on market status. In the following sections, we will explain common issues and their solutions in more detail.

Doubtful Profit

There is no way to guarantee a profit in the Forex market, which is often considered the best market to trade for beginners. Prices can change rapidly, and you may not achieve your expected profits. However, this issue does have a solution.

You can combine trailing stops with other strategies, such as risk management. For example, setting a fixed stop-loss can enhance the safety of your trades.

Technical Issues

Technical issues related to MT5 may prevent the trailing stop from functioning correctly, often due to server problems. You can address this by ensuring a stable internet connection.

Furthermore, keeping the MT5 platform updated is worth it. Using trailing stops manually is also an option that is to be preferred because this provides the traders with more control over the trades they are taking.

Conclusion

Using trailing stops on MT5 is a vital strategy for every trader. This method can help you increase your profits and manage your trading risks. A trailing stop means setting stop-loss levels to capture profits while prices fluctuate.

If you’re beginning with MT5 or an experienced trader, applying trailing stops with a clear strategy can be the difference for your performance.To use this method effectively and easily select your stop-loss, consider creating an account with STP trading. This can be a remarkable opportunity to enhance your knowledge about trailing spots and improve your profits. Start your trading journey by opening an account today.

Frequently Asked Questions 

1- Can I set a trailing stop prior to entering a trade on MT5?

No, MT5 only allows trailing stops on open orders. You cannot place a trailing stop as an order component. You must open the position first and then add the trailing stop manually.

2- What happens if I close MT5 or go offline?

Trailing stops on MT5 are client-side orders and thus work only while the MT5 terminal is running and connected online. When you close MT5 or go offline, the trailing stop will cease to be adjusted and will revert to a fixed stop loss at its former position.

3. What is the difference between a trailing stop and a normal stop loss on MT5?

A fixed stop loss is a permanent order entered at a fixed level of price and does not change. A trailing stop tracks the market price when it is moving in your favor, falling behind by a set number of points, and changes automatically to take profit.

4.Are there any limitations or risks in using trailing stops in MT5?

Trailing stops require MT5 to be online and running properly in order to function effectively. In trendless or turbulent markets, the trailing stop could trigger at an adverse price owing to slippage. Making the trailing stop too tight can lead to unnecessary trade exits as a result of ordinary market movements.

5. Can expert advisors (EAs) be used to automate trailing stops in MT5?

Yes, most EAs (trading robots) are capable of handling trailing stops more adaptively, even on the server side, which outperforms MT5’s client-side trailing stops limitation.