1. Definition (Simple Version)
Trailing Stop is a stop-loss method that automatically follows price movements.
✅ It will move the stop-loss in the direction of profit as price moves favorably.
❌ It will not loosen the stop if the market pulls back.
2. Example
You go long on Gold (XAU/USD) at 1920 with a trailing stop distance of 50 points:
Price rises to 1930: Stop moves from 1920 to 1890
Price rises to 1940: Stop remains at 1890 (no rollback)
Price falls back to 1935: ❌ Stop stays at 1890
Price drops to 1890: ✅ Stop is triggered, locking profit
🧠 Conclusion: Trailing Stop = locks in more profit as price rises, but never follows the decline!
3. Trailing Stop vs Normal Stop
Auto adjustment: Normal Stop ❌ Fixed ｜ Trailing Stop ✅ Auto track profits
Protection: Normal Stop → Limit maximum loss ｜ Trailing Stop → Protect floating profit
Best use case: Normal Stop → All trades ｜ Trailing Stop → Trending & volatile markets
4. How to Set Trailing Stop in MetaTrader 5
✅ Method 1: Right-click Existing Order
In “Trade” window, locate your order
Right-click → choose “Trailing Stop”
Select fixed distance (e.g., 50 points)
When profit exceeds 50 points, trailing stop activates
✅ Method 2: Custom Distance (Advanced)
In “Trailing Stop” menu choose “Custom” to set any distance (e.g., 37, 75 points)
⚠️ Note: MetaTrader client must stay running (Trailing Stop will not work if client is closed)