Quik: new positions, deals, stop losses, take profits. How to avoid failure of stop loss orders? Setting a stop limit and slippage in a quick (quik) How to correctly set a stop limit for shares
You can significantly speed up the entry of orders by enabling the order entry mode from the chart window. To do this, with an active chart of the instrument, click the button, as shown in the figure.
Now, in order to quickly enter a request in the Quick, just left-click on the candle and the window for entering the request will appear.
1.1. Limit orders
To quickly enter a limit buy order, click on the candlestick below the planned entry price.
The terminal will automatically fill in the order with the cost of a mouse click.
After entering the order, left-click and drag the limit to the required price level.
To enter a limit sell order - click above your planned entry price. And, after placing an order, drag it to the desired price.
1.2. Market execution
To quickly buy by market - click on the candle above the current market price and enter a buy request.
A quick sell can be done by clicking on the candlestick below the market price and entering a sell order.
2. Quick placement of stop-loss orders in a Quick
To quickly enter a stop order, right-click on any price candlestick, then select "New Stop Order". Or just press the F6 key.
3. 2. Set a standard trading lot
If trading is carried out with one asset with approximately the same stop, then setting a standard lot size will significantly save time when entering an order.
To set the lot size you want:
go to the menu Service / Settings / Basic settings.
Left-click on the Trade menu,
in the Number of lots window specify the standard position size and click OK.
Now, when you enter any order, the amount you specified is filled in by the terminal automatically.
4. 3. Remove confirmations in the QUIK terminal
If you already have trading experience and clearly understand the differences between buy and sell orders, do not waste time confirming them.
To do this, go to the menu Service / Settings / General settings / Trade / Orders and uncheck the items "Request confirmation ..."
5. 4. Use the ENTER key
After filling out the application form, simply press the ENTER key on your keyboard.
This is many times faster than confirming an application with a mouse cursor.
6. 5. Remove orders quickly
You can quickly remove orders with the left mouse button from the chart window.
To do this, hold down the application with the left mouse button and move it outside the chart boundaries until a red cross appears on the cursor. And release the left mouse button.
Take profit is a certain price value at which the transaction is automatically completed. In this case, income will be fixed, therefore it is also called the level of profit fixing. The take profit level can be set both before and after opening a position, i.e. you can change it without any restrictions. It is important to understand that the profitability of the order directly depends on the correct determination of the take profit level, therefore the take profit level for each open deal is determined individually. Running a little ahead, I'll tell you how to set take profit and stop loss correctly.
I gave the steps described below using the example of the Amarkets broker, through which I traded in Forex for a long time. For full-fledged work, you need to go through a simple registration, after which you can open a trading account in one click, make a deposit and start trading by downloading the trading terminal.
https://my.amarkets.org/sign_up/real/step1/g/0YTMX
In order to set take profit and stop loss levels when opening a position, you need to do the following:
1) Open the Meta Trader trading terminal and log in. If you do not know how to do this, I recommend reading my article on how to start trading Forex on your own.
2) In the toolbar, click the "New order" button
3) In the "Order" window that opens, indicate the values of the assumed levels.
trading terminal Meta Trader
In order to set or change the stop loss and take profit levels after opening a trade, you need to double-click on the line with an open trade in the lower panel of the Meta Trader trading terminal.
How to set the take profit level correctly
I hope everyone is aware that positions (deals, orders, as you like), opened in Forex, differ in the direction of trade and can be long (long, buy, buy) and short (sell, sell). For each of them, the mechanism for setting take profit will be different. I propose to analyze with examples how to correctly set the take profit level for various directions.
For deals opened in the buy direction, the take-profit is set above the starting price. Suppose we conducted an analysis and made a conclusion about the upcoming growth of quotations for the euro-dollar (EUR / USD) pair. We decide to enter the market at 1.3685. Analysis and intuition tells us that the price will rise by at least 30 points. set the take profit level to 1.3715.
How to set take profit for long positions
The forecast comes true, and the price rises, reaching the specified level, the deal is completed automatically. As a result, we will receive a profit of 30 points, regardless of where we were at the time of closing the position.
In this situation, on the contrary, the take-profit level should be below the starting price. Again, in order to understand the effect of this instrument on a short trade, consider the euro-dollar (EUR / USD) pair. Suppose we entered the market at a sell price of 1.3725 and set a take profit of 1.3685. If after a while the price dropped and reached the level set by us, then the deal will be closed with a profit of 40 points.
How to set take profit for short positions
Before moving on to considering the stop loss, I would like to draw your attention to one important point: in most cases, you should not change the take profit level during the transaction, it is better to adhere to the initially set value. Greed is not the best advisor for any investment vehicle.
Stop loss - what is it?
Stop loss (also called stop limit or moose), like take profit, is a tool for fixing a deal upon reaching a certain price, with the only difference that stop loss serves to minimize the trader's losses. loss is a means of ensuring the safety of trading on financial markets... When the stop-loss level is reached, the deal is automatically closed, only unlike the take-profit, a loss will be recorded here. However, the principle of operation of both tools is identical.
How to set stop loss (stop loss) for long positions
We will deal with the same pair of euro-dollar (EUR / USD). Let's say we opened a trade at 1.3725 to buy. We indicate a stop loss below this price (for example, let's take 30 points), in case our forecasts turn out to be wrong and the price will fall. When the quote reaches 1.3695, the stop loss will be triggered and the system will automatically complete the deal with a loss of 30 points. The chart shows that after the stop limit was triggered, the price continued to fall, thus. by placing a stop loss, we minimized losses, and maybe even saved the deposit.
How to set take profit stop loss (stop loss) for short positions
In short positions, stop-loss has the same mechanism of action, but its level must be higher than the price at the opening of the trade.
Here's another example: the euro-dollar (EUR / USD) pair on a 5 minute chart. Let's say we decide to open a sell trade at 1.3685 because we thought the price would decline. But just in case, we set a stop loss (above the original price) at 1.3725. As a result, the price went far beyond 1.3725 and the trade was automatically closed with a 40 pips loss.
After you have learned what take profit and stop loss are, the next question that should arise in the head of a novice trader is how to calculate the stop loss and take profit level for each trade? But within the framework of one or several articles, it is impossible to answer this question. Many factors influence such calculations, for example:
features of a currency pair;
trader's intuition and analysis;
duration of the transaction;
trader's strategy;
amount on the trading account, etc.
As for my trading and investing strategy, I set the stop loss level only in those cases when I know that I will not have access to the terminal for a long time. I insure my deposit against uncontrolled drain. Not using stop loss slightly increases the risks in trading, but my trading account now has about $ 2,000, and I trade in small lots, so the deposit can withstand enormous drawdowns.
Take Profit is an order to automatically close a deal with a profit when the price level specified in advance is reached. Take Profit is translated into Russian as “Take Profit”, so this order is usually placed in cases where a trader cannot continuously monitor an open deal or expects sharp price movements.
HOW DO WE PUT TAKE PROFIT?
Take profit is set for a Buy deal above the order price, since we assume that the price will move up. For example, if we opened a buy trade on EURUSD at 1.12595 and would like to get a profit of 50 points, while not being at the terminal, then after opening a trade we would have to set Take Profit at 1.13195, as shown in Figure 1.
How to set take profit for a buy trade?
For a sell deal (Sell), the opposite is true - take profit is set below the order, because we are waiting for the price to fall. For example, if we have a sell deal at 1.13200, then if you want to get exactly 50 points of profit, you will need to set a take profit at 1.1320 - 50 = 1.12600. In this case, we have five-digit quotes, so 50 points look like 500.
How to set a take profit for a Sell trade?
Note that take profit can be set for all types of orders, including pending orders.
Like the Stop Loss order, Take Profit is executed automatically even when the terminal is closed, i.e. stored on the broker's server.
Let's consider a simple example of how to set a take profit in the MetaTrader 4 terminal. The question is often asked how to set a take profit in the Quik terminal, let's just say, we won't see much difference here - general principle staging will be similar. Suppose we have opened a small sell trade on EURUSD and we want to set take profit for it. We can see this both on the price chart and in the “Terminal” tab.
Place an order for a sell deal. Example.
Hover over the selected deal in the "Terminal" tab with the mouse and press the right button.
In the window that appears, look for the item "Modify or delete order".
Click it and go to step 2.
Step 2
We set take profit directly. To do this, we need the right block with the blue button. Take Profit can be set in three different ways:
By setting a certain level in points from the current price, where the take profit will be placed.
By choosing the proposed minimum take profit from the current price.
By yourself setting the quote for the desired profit level.
Step 3
Suppose we chose the first option and set the take profit level 20 pips below the current price. What will happen?
After clicking on the change button, we will receive a take profit set not from the trade opening quote, but from the price that the market is currently offering. That is, if your trade is already in the red by more than 20 points, then take profit will close the deal with a minus, and not with a plus, as we expect. Therefore, be careful.
How to set take profit at 20 points from the price?
Therefore, it is better to always use self-entry of the take profit price, as shown in the following figure. This will increase control over the situation. As a result, we set the take profit 20 points below the trade opening price.
How to set take profit 20 pips from the opening price?
Step 4
After clicking on the change button, the take profit will be set. You will be prompted to print information about this event as a memory. If you keep a trader's diary, it will even be convenient.
Print order to set take profit
In addition, the fact of setting a take profit will be displayed both on the chart and in our deal. Congratulations!
So we have set take profit.
HOW TO CANCEL AN INSTALLED TAKE PROFIT?
If you suddenly made a mistake with the price or simply no longer want to use take profit, you can easily delete it. For this:
Hover the mouse over the take profit line.
Press the right mouse button.
Find the item "Cancel Take Profit" and click it.
HOW TO TRACK TAKE PROFIT IN METATRADER4?
The result of your open trade, which has a take profit set, is easy to track. As soon as the price approaches the moment of closing the order with the set profit, the corresponding take profit price field turns green. At this point, you can begin to actively monitor the market in order, if necessary, to close the order manually if in doubt that the price will reach your level.
The order is close to closing by take profit
If everything goes according to a previously thought out scenario, then the deal will close itself with a profit, like ours. And this result will be displayed in the "History of deals" field - a green square will appear in the line of the closed deal, highlighting the take profit price.
The deal was closed by take profit
I would like to add that often traders replace take profit with a similar trailing stop order. In some cases, this is perfectly reasonable.
Stop Loss and Take Profit are the main means of position management. Whoever says what, but the only thing we are able to control in the market is the entry point and the amount of risk. To find the point of entry into the market, the trader uses a trading strategy, and to control the amount of risk, stop loss.
What is stop loss
As I said, a trader needs a stop loss to limit possible losses if the price goes in the wrong direction. Its size is the amount that you are willing to risk for the sake of probable profit. Let's take an example. Let's say you bought 5 lots of any currency pair, in order to close it, you need to sell these five lots. You have two exits: sell 5 lots at a take profit (that is, when the price is above your entry point), or at a stop loss at a loss (when the price is below your entry point). Stop loss is an essential element in the trading process of every intelligent trader. Without a stop loss, loss control becomes practically impossible.
How to set stop loss
For long and short positions, stop losses are placed in opposite directions from the entry point. For example, let's say that you bought 10 shares at a price of 50 rubles, in which case the stop loss will need to be set below the entry point (50 rubles), let's say at the level of 45 rubles. In the event of an unfavorable scenario, when the price reaches the level of 45 rubles, a market sell order will be placed.
And if you sell, for example, the same 10 shares at a price of 50 rubles, the stop loss will need to be set above the market entry point. For example, let it be the price of 55 rubles per share. In the event that the price moves against you and reaches the 55p mark, a stop loss will be triggered and a market buy order will be automatically placed at this price.
How to set a stop loss in a quick (QUIK)
In order to set a stop loss, in the QUIK terminal, you need to click on the icon in the form of raised fingers with the letter S.
Stop Loss and Take Profit what is it
Stop Loss and Take Profit what it is After that, a window will appear in which you will need to set the parameters of the stop loss execution. The most important thing is to indicate the price and the number of contracts. In the box number (lot), you need to put the number of lots or contracts for which you opened a position. Next, we indicate the condition for activating the order. As I explained in detail above: if you have a long position (you bought assets), then you need to select the "Sell" item.
And in the event that you shorted before that (sold without coverage), then you need to select the purchase item. After that, we select the price, upon reaching which the stop loss will be triggered. Again, if you are in a long position (Long), then the price should be quoted below the entry price. If you are in a short position (Short), then we set the price below the entry point. Having indicated the price of triggering the stop loss, you must also indicate the price at which the order will be placed. Look here at your discretion, but in my opinion, it is best to select the "At market price" item as it is the safest.
How to set stop loss in MT4
First, you need to open the window for placing orders by clicking "New order" in the top menu. Then, in the window that appears, set the stop loss in the Stop Loss field at a distance from the market entry. When choosing its size, you need to proceed from the rules trading strategy and risk management.
How to move stop loss
In general, it is not recommended to do this, especially for beginners, as it can negatively affect trading results due to violation of risk management rules and trading system... But, there are times when it is necessary to do this. Moving the stop loss is very simple, you need to move the mouse over the line of which the stop loss location is marked on the chart, hold down the left mouse button and drag the stop in the desired direction.
How to enter a position using a stop loss
Most traders know that it is necessary to set stop losses in order to play profitably on Forex, but not all use them. In addition, you should understand the reasons for their use, the main of which we will describe here. The main thing here is not to confuse: if you open a buy trade, then the stop loss must be placed below the entry point, and if you open a sell trade, then the stop loss is set above the entry point.
Trailing stop
One of the very interesting types of stop loss. This type of stop loss is automatically pulled up following the price through a certain step. It is most often used for trending strategies, as it allows you to squeeze the maximum out of the movement. Among the downsides is the fact that such a stop loss can often knock out random market noise. Therefore, some traders exit the position in parts. That is, only part of the position is closed using the trailing stop.
Correct attitude to stop loss
Stop losses allow you to keep your losses under control
Stop loss makes it possible to control the amount of loss in each individual transaction, and also excludes the loss of the entire deposit. Controlling losses allows the trader to ultimately make a profit, as the ruble saved equals the ruble earned. So if you want to gain a foothold in this business, you need to pay special attention to loss control, that is, to be able to effectively use stop losses.
Before entering a trade and placing a stop loss, it is very important to understand that the size of your stop is the amount that you do not mind losing in the market. You must be mentally prepared for the fact that the stop loss will work and this should not affect your emotional balance in any way. Hope for the best, but prepare for the worst.
Stop losses relieve emotional stress
There is no need to worry about the safety of the deposit if you opened a position with a stop loss. After that, you can even forget about the trading terminal for a while, and not sit constantly at the monitor and watch the floating profit or loss. A stop order is your consent to a possible loss, because everything that you were able to do, you have already done. All that remains is to wait for the financial result.
Stop losses indicate that the analysis of the market situation was not carried out correctly
A triggered stop loss is an indicator that your forecast or analysis turned out to be wrong, because the situation is not developing as you expected. You do not need to perform the operation in the direction in which it was performed unprofitable deal... Stop loss showed that your forecast does not coincide with the market trend and you should change your mind about the situation as quickly as possible in order to be able to get income.
Stop losses allow you to enter the market at a more profitable quote
When entering a trade, you need to focus on the size of the stop loss, and not on the amount of possible profit. A stop order should be placed at a logical level, so that when it is triggered, it is unambiguous to understand that the analysis of the situation on foreign exchange market turned out to be wrong. You need to open a position at the lowest price in order for the stop loss to be small. Therefore, when making a deal, you need to take into account the stop loss level. When it turns out to be large and does not meet the requirements of your risk management and money management, then you should abandon this trade and wait for the next good trading signal.
Take Profit what is it
If stop loss is needed to fix losses, then take profit is needed to fix profits. Take profit is an order to close a position with a profit, if the price moves in the direction chosen by the trader. The potential profitability of the deal depends on the size of the take profit.
How to set take profit
Take profit is set in a mirror image relative to stop loss. If you have opened a buy trade, then the take profit must be set above the market entry point. If you have a sell trade, then take profit should be placed below the entry point.
How to set take profit in Quick (QUIK)
In the terminal, quick take profit can be done in two ways:
Pre-configuring the ability to quickly place and withdraw orders through the glass
And directly on the chart
How to set take profit in MT4
This is done in the same window. Only in the place of the stop loss setting field you need to correct the take profit setting field. An even easier way to set both stop loss and take profit is to pull the line marking the entry point to the market after the order is executed. If you made a buy deal, then by pulling the line up, you will get a take profit, and by pulling down the stop loss. For a sell deal, the opposite is true.
Stop Loss and Take Profit
Stop Loss and Take Profit what is it | Instruction | Full parsing
For different strategies, a different ratio of stop loss to take profit is suitable. The main variations are shown in the figure below.
1 to 3 ratio
This ratio of take profit and stop loss is suitable for trend strategies. In this case, you will “catch” stop losses more often, but for the catch that in case of taking a take, you will beat off 3 stops at once. It turns out that in order for the strategy to be profitable, you need to have 30 profitable trades out of 100.
1 to 2 ratio
Stop losses will be triggered less often, but accordingly, the profit in case of a successful deal will be lower. The minimum number of profitable trades for a given stop loss to take ratio is 40 out of 100.
1 to 1 ratio
In this case, in order to obtain a positive mathematical expectation, you need to have even an extremely small margin in positive trades, if the number of positive trades is 55 out of 100, then you will already earn. (don't forget about the commission)
2 to 1 ratio
In theory, a take should be triggered even more often than a stop. By itself, the advantage in positive trades will be greater, but it is worth remembering that if the stop loss is triggered, you will get a double loss. With this ratio, 60 trades out of 100 should be profitable.
In English, the sound does not change: Stop Loss - as it is written, so it is read. If we translate, we get “stop loss”. Indeed, Stop Losses serve to sell financial instruments, according to which our forecasts did not come true, and the deals went into negative territory. In the jargon of traders, you can hear the names like "Stop" or "Elk", you know now, the common phrase "I caught a moose!" speaks more of an unsuccessful hunt than a big catch.
Forex, as you and I know, works around the clock, but this does not mean that we constantly sit at the monitor and pray to the charts. If we leave the computer, leaving open trades, we risk not being able to return in time - sudden news or a large player will turn the market, and our deposit will turn to zero.
However, if we set Stop Loss at a certain level, the broker will automatically close our trading position, even if we ourselves do not do it manually, as soon as the price touches it. Thus, Stop Loss allows you to open a trade, determine the maximum possible loss, protect yourself from deeper drawdowns and "disconnect" from trading, going about your business.
A trade order opposite to Stop Loss is called “Take Profit”. It no longer fixes losses, but the trader's profit. If the currency moves in the right direction, profit is constantly displayed in the terminal window, but we are not at the computer, the broker will automatically close the deal as soon as the rate reaches a certain value.
Consider the difference in the US dollar against the ruble. Let's say on the 4th of October we bought American currency at the price of 61 rubles. for $ 1.
US dollar deal
We set our Take Profit at 78.796 and Stop Loss at 47.875. Thus, if the price rises to 78.796, and we are not at the computer, the broker will automatically close our deal, the profit will be 17.796 rubles per dollar. In fact, of course, there will be at least 1,000 times more.
If our forecasts do not come true, and the market collapses downward, at the level of 47.875 rubles, the position will be automatically closed by Stop Loss. If the recession continues, we will not lose money on it, we will protect the rest of the deposit. Possible loss with this strategy - 13.125 rubles. with $ 1, the profit is 1.35 times the Stop (we will return to this ratio later).
Fortunately, the dollar was going up, the position would have closed with a plus.
How to install them correctly - 3 possible ways
We talked about three ways to install them earlier in the article "Overview of the main functions of the MetaTrader trading terminal", so we will briefly mention them. First, let's define the types of trading positions.
Transactions in the foreign exchange market are divided into two large groups:
Positions to buy currency (Buy) - we expect prices to go up, the rate will strengthen, we buy cheaper in order to sell them at a higher price. Their other name is "Long", long positions. Practice shows that the market goes up much slower than down (“long” in English means “long”, “long” - you have to sit and wait for a long time), because the dominant emotion in the market crowd is enrichment, capital increase.
Positions for selling currency (Sell) - we expect that prices will go down, the rate will weaken. To buy at a higher price in order to sell at a lower price is absurd, of course, everything is a little different. If the dollar rises in value, then the ruble falls. If we think that dollar will fall, then we buy the ruble, which will rise in price on the fall of the dollar, and we will sell it at a higher price, with a benefit for ourselves (but in order not to bother with all this, we sort of open a deal to sell the dollar in the terminal). Another name - "Short" or short position ("short" in English means "short", you will not have to wait long). The reason is that the market usually falls much faster than it grows, because the crowd is seized by fear, anxiety for their money, traders are in a hurry to sell assets, get rid of them. The result is that the currency is falling down like an avalanche.
Now, what does the type of position have to do with Stop Loss and Take Profit? Beginners sometimes confuse seemingly elementary things. If we open a long position, that is, for a price increase, Stop Loss will be below the open price, and Take Profit will be above it. For if the price will fall, we will lose money, and if it grows, we will earn.
When I was learning to trade, my first teacher said: "The size of the profit must be at least twice the potential loss, then we will trade either with a plus or with a zero." Another trader later convinced the opposite: “There are transactions with potential profitability 2, 3, 10 times more risk, but this is ideally, there are not so many profitable trades. If Take Profit exceeds Stop Loss by 20% - it's already good, you can open a trading position. "
Concluding the conversation about setting SL and TP, I will touch on scalping - short-term trading strategies in which the trader catches the slightest price movements. Scalping attracts the attention of a huge number of people, it is praised everywhere, but is this really the case?
Indeed, the wealthiest traders are scalpers. However, to achieve high professionalism, you need to trade for more than one year, to understand the principles of market movement. In each trade, the scalper receives a very small profit in relation to the possible loss. So the main drawback of strategies of this type is the risk of losing all profits traded during the day (dozens of trades!) In one unsuccessful position. Think not only about money, but also about nerves.
I had a chance to somehow familiarize myself with scalping strategies from Marat Gazizov (a trader-teacher at Alpari) - we will definitely analyze them, because the thing is very worthwhile, the Stops there are much more democratic than usual.
Just 5 to increase profits using floating stops or Trailing Stop order?
If you have already tried to open trades in trading terminal and the price went in your direction, you probably wondered: “What if I don’t close the deal now, I don’t pull up the Stop Loss, the market will reverse and I’ll cure with a big loss?” Let's consider this problem.
In most cases, you cannot move the Stop and Profit levels. This is a violation of the trading plan. Return to trend trading - if I were to lower the Stop Loss level, I would be constantly carried away, because the market did not reach the target and rolled back to the upper border of the channel.
Therefore, the moral is to open a deal, place Stops and wait. We move them only in accordance with the strategy, if it requires it.
However, there are sometimes interesting situations in the market - prices go down or up powerfully. Your trades are closed with a plus, but judging by the traffic intensity, you could take a few more points. How to be?
Here we are helped by the floating or sliding Stop Loss, its name on English language- Trailing Stop. What is the principle? Trailing Stop moves Stop Loss following the price. This does not mean that the Stop is constantly twitching, like the price: the movement occurs after the rate has changed by a certain number of points. The stop goes up / down depending on the deal (Buy or Sell), it doesn’t come back under any circumstances.
It is advisable to set Stop Loss manually before enabling Trailing Stop. In case the lights are turned off or another force majeure situation arises. Will the issued protective order in any way interfere with the work of the floating? No, absolutely not. If the Trailing Stop step is 15 points, then after this distance is passed by the price, your Stop will automatically move to breakeven.
Manual stops are also needed because floating stops are set only when the deal is profitable. If we have opened a long position and the price has gone up, the stops will successfully start moving behind it. What if the market decided not to go up? If the rate does not rise from the open price by the number of points required to set Stop Loss, a protective order will not be placed. And if the market then collapses downward, there will be no protective order, you will lose a very large amount.
If the Trailing Stop has been working for some time and has moved the SL level, then when the terminal is turned off, the most recent “protection” level will remain in working condition. If in your absence the price drops to it, the deal will be successfully closed, you will remain in the black.
If the Trailing Stop has set SL, and you want to remove it, you need to disable the trailing process. Because no matter how many times you click “Cancel Stop Loss” (this option is provided if you right-click on the SL), it will intrusively return to its original position in a second.
Supplement about using Trailing Stop. It helps a lot not only when “exceeding market expectations”, but also when trading on the news. During the news release, prices are sharply rushing up. For successful trades, it is better not to set Take Profit, but to use the Trailing Stop in order to squeeze the maximum profit out of the movement.
Naturally, it is necessary to set not a 15-point distance from the price, but a more serious one, because the market still does rollbacks (not in several candles, as usual, but simply in the process of forming one candle: sharply up, then down by a few points, then even higher than before, and so on).
Is a trade always closed by Stop Loss or Take Profit?
No not always. There are three reasons why a trade can close earlier or later than necessary, the trader either receives less profit or suffers a larger loss.
The first reason is slippage. In a separate article we will talk about why they arise and what they are all about. Now it is enough for you to know that slippage is a breakthrough of the rate by several points at once. For example, you wanted to sell the dollar at the rate of 60.00 rubles, you placed any trade order (Stop Loss, Take Profit or a pending order). The price was 59.98, and then the market immediately jumped to 60.02. Thus, there was no price of 60.00, the trade order will be executed at 60.02.
Now it seems to you that this is insignificant, in most cases it is so. But, if important news comes out on the market, slippages can be very large, if you enter a trade with a large volume, the difference will no longer seem frivolous.
The second reason is gaps. In a separate article, we will not only give them a simple and understandable definition, but also learn how to trade on different types gaps. For now, for the sake of simplicity, remember this: gaps are price gaps that occur when the market is closed. On Forex, they are observed after weekends or holidays, on stock market- daily.
If no major events happened over the weekend, prices will not deviate much from their previous values, otherwise the gap could be huge. For example, last weekend in France, the first round of presidential elections was held, all currency pairs with the euro and many others opened with a gap on Monday.
The gap after the weekend
As in the case of slippage, there seems to be no price gap between the extreme prices, so the broker is not able to execute a trade order. If on Monday after the day off the price is behind the Stop Loss level (lower for a long trade and higher for a short trade), the position will be closed exactly by this level. The result - you planned to lose one amount, and you will lose another, larger one.
On the forums there are often messages like "I lost 30% of my money on Monday because of the gap!" Be careful when leaving open trades for the weekend, read the separate article on gaps to learn how to defend against them.
The third reason is Stop Out. If you overloaded the deposit, and the market went against you and consumed most of the capital (usually 75 - 80 percent), the broker will automatically close all transactions, wait for the execution of Stop Loss or, moreover, Take Profit, it will not. In order to prevent Stop Out, it is necessary to set a protective order in all transactions and remember about the rules of money management (we will talk about this later).
Novice traders often trade without Stop Loss. When they are "reasoned", they are sure to complain about the decline in profits. Yes, the market periodically reverses, so trading with a Stop seems less profitable, but sooner or later one trade appears, on which there is no reversal, all the money is consumed.
In conclusion, I will give you another good example. Let's say you opened an unsuccessful EUR / USD trade in September 2003. You thought prices would go down, but they turned back. Has the price returned to its last harbor?
Market cyclicality
Yes, only now it took her 12 years to return. Would you agree to wait, assuming that the market will not take you out with a Stop Out?
Good day everyone. Today we'll talk about how to correctly set a trailing stop (or another trailing stop) in the QUIK terminal and is it needed at all? I myself do not use a trailing stop in my trading, but always move the stop loss manually. But since I am often asked about this, and this topic is interesting to many, I will try to reveal it in this article. So, let's begin.
What is a trailing stop loss and is it needed?
In general, traders who trade intraday and open positions on several instruments at the same time are most suitable for traders. It can be quite difficult to keep track of all the securities and drag the stop manually. Naturally, in this case, it is necessary to competently approach the selection of trend instruments. Since if you use a trailing stop loss when trading in a flat, then you will catch it quite often.
But personally, my favorite thing is to drag the stop manually. This gives you better trading results. Since the volatility and mechanics of price behavior change periodically in the market. For example, sometimes the trend movement is very smooth, with small consolidation zones, and sometimes with significant pullbacks. If we drag the stop loss manually, it will be much easier to track. In the case of a competent pull-up of the stop on your own, behind the consolidation zones, or behind the levels, the trading performance will increase. In particular, in my trading I use some formations based on this principle. Now let's move on to setting a quick trailing stop. I'll tell you about the example of a Sberbank futures.
How to set a trailing stop in QUIK?
So, right-click on the order book and select the "new stop order" item. Then it changes the type of stop order to “take profit”. After that, we will have the next window, look at the figure (Fig. 1).
Next, we need to register the appropriate parameters. For example, if we bought futures for Sberbank at a price of 9 800 and want to sell it at least 9850, then in the window “take profit, if the price<=” необходимо прописать соответствующее значение. Если мы хотим чтоб после достижения этой цены стоп-лосс начал автоматически пододвигаться, то выставляем в графу отступ от min необходимое значение, например 50 пунктов. После чего стоп будет пододвигаться за ценой на расстоянии 50 пунктов. Например, цена стала 9 900, то стоп передвинется на 9 850 и тд. В случае отката цены стоп-лосс заявка останется на месте. Далее не забываем выставить защитный спрэд – это разница цены между ценой исполнения и худшей ценой, по которой вы готовы выйти из позиции. Другими словами проскальзывание.
And so that the deal is guaranteed to close, do not forget to set it. Then we select the required number of contracts and press enter.
We can also place a take profit and stop limit order (Fig. 2). It differs in that here we can set a protective stop loss. You can read more about this.
That's all. I hope you find this material useful. All profit.
Respectfully yours, Stanislav Stanishevsky.
PS... For more details on setting a trailing stop in QUIK, see the video.
Hello dear readers and blog guests! Since financial trading seems to be an insurmountable barrier for many "dummies", I suggest starting from scratch and expanding your knowledge of trading.
After all, everything is not so difficult, if not even simple, and all exchange gurus began their journey by studying the elementary: what are stop loss and take profit?
The basis for concluding deals on any exchange is the opening and closing of an agreement; all trading movements in the terminal are built on this.
To do this, the trader gives an order to the exchange intermediary to open a deal in the form of a completed document (order), where he can open.
Further, the order received by the broker is processed, and your asset enters the market according to the parameters you specified. In addition, the dealer terminal provides the ability to manage and check the status of your transactions.
It is customary to call a market order an order from a dealer company to buy or sell a financial asset according to the market rate.
To carry out transactions, the broker uses four groups of orders:
- Market - means to open a position at the market, that is, to buy at the offer price.
- Postponed means placing an order at your own price and waiting for it to be fulfilled.
- Stop Loss is set to limit losses if the price goes in our direction.
- Take profit is placed to take profit on the target.
Stop loss - what is it and what is it used for?
Stop loss in English means “stop loss”. In the language of stockbrokers, you can hear the phrase - "I caught a moose" - it says more about an unsuccessful hunt than about good catch.
Stop loss order is designed to control losses if the market rate moves in a direction that is unprofitable for a trader.
Stop loss is an automatic type of loss fixing in a particular deal. When your asset reaches a certain price, the order is closed automatically according to the contractual parameters.
Stop Loss is issued only together with market or pending orders.
Stop loss is not always unprofitable; it can also be used to fix profits. For example, if the trade is in positive territory, you can drag this order with the condition that the position is closed in the positive zone, that is, in case of the worst movement of events, your trade will close in positive territory.
A stop order is placed in Quik by pressing F6 or right-clicking on a candlestick on the chart.
Next, set up SL as shown in the figure below. For example, in this case, I put SL below the minimum on the chart - 115 rubles, in the field I put the price below SL by 1 ruble - 114 rubles, that is, this is protection against slippage.
Since the price may fall sharply below 115 and the SL may not be triggered and the trade may not be closed. And taking into account slippage, the deal will close, for example, at 114.55 rubles.
In the forex market, as in the stock market, placing a stop order requires compliance with the following rules for successful trading:
- closing an unprofitable operation at a set price;
- fixing a certain income when the rate moves to the profit zone.
Stop loss is a necessary indicator of technical exchange activity, the correct application of which significantly reduces risks and increases the deposit.
How to calculate SL
Let me explain with an example, let's say we have a deposit of 100,000 rubles, according to the strategy, we can lose no more than 2% of the deposit, that is, 100,000 * 2% = 2,000 rubles.
It follows that if we buy at 119 and set the stop at 115, i.e. in case of a bad game, we get 119-115 = 4 rubles of loss per share. Next, let's calculate the number of shares that can be bought with this condition 2000/4 = 500 shares, but since Gazprom is selling 10 shares in 1 lot, we get 50 lots.
In total, we get the following that we can buy at 119 rubles 500 shares in the amount of 59,500 rubles, and if the stop loss is triggered, we will receive a loss of 2000 rubles or 2% of our deposit.
Take profit and its possibilities
An order to a broker in the form of a market execution to fix a profit is a Take Profit, which in English means “take profit”. Execution of this order leads to the complete completion of the trading operation.
Trailing trailing stop in Quick
When automatically moving a stop, a Trailing stop is used, this is when a stop order automatically moves behind the current price in a certain specified range.
For example, they bought at 119 rubles, set TP at 123 with an indent from the max of 0.5 rubles and a protective spread of 0.2 rubles. If the price rises to 123, then the take is activated, but will not close the deal until it falls from the maximum price by 0.5 rubles.
For example, the price rose to 124 and then fell by 0.4 rubles - the deal is not closed, since the indent is from the maximum of 0.5. Then the price increased to 125 and fell by 0.5, here our deal closes at a price of 125-0.5 and, taking into account the slippage of 20 kopecks, and closes in the range of 124.5 - 124.3. Our profit will be 124.5-119 = 5.5 rubles per share.
TP cannot be carried out without an open position or pending order, its issuance is directly related to open or market orders.
The principle of operation of the financial conditions of Take Profit is identical to the principle of operation of stop orders, where the cost of activation and the conditions for its implementation are indicated. A distinctive feature of these orders is their final discrepancy, as well as the technology for determining their profitability or loss of the deposit.
Placing a TP order is provided for by the following nuances:
- obligatory setting of the price of activation of an order to close an operation;
- admissibility (maximum, minimum) of the price for order execution.
Exchange orders SL and TP are saved on the broker terminal until the time specified by the trader (when filling an order, I always choose until canceled) and are executed automatically.
Take Profit calculation
TP, I usually calculate either 1: 3, that is, the profit should be three times the expected loss, or we focus on the chart and set TP for the previous historical maximum.
Setting stop and profit
How to expose SL and TP is studied at the first stages of acquaintance with the exchange structure. According to technical analysis, the correct placement of these orders directly depends on strong price levels.
In a trend, such boundaries are support, resistance, and in a flat - price boundaries of maximum and minimum peaks.
Simply put, it is advised to set a stop order above price highs or lows, and it is better to withdraw profits upon reaching strong levels.
Usually, the setting and determination of "moose" and profits is related to:
- with the terms of the trading strategy;
- with readings of indicators, advisors or graphical analysis;
- with a simple setting of a larger profit than a loss.
In order not to be "confused" when placing orders, it is important to take into account one and rather important detail, how.
For the convenience of trading on financial markets, trading in quik is used, as one of the most common methods of conducting transactions, which provides for automatic transactions to buy and sell instruments online.
Many exchange traders give preference to the Quik platform, neglecting the usual Metatrader, due to the fact that Quick provides more opportunities for access to futures and options under the terms of the contract.
Also, I must say that there are all kinds of advisors, these are some kind of utilities, scripts supposedly helping to choose the right level. I personally did not use it and was not interested in it. I recommend not focusing on this.
Benefits of using TP and SL
Using orders necessary for trading, traders have a number of significant advantages of using them:
- simplicity and convenience in concluding transactions;
- control of losses and profits;
- execution of transactions in the absence of a trader;
- using advisors or robots in trading.
I think friends that the topic of setting a profit and a stop is disclosed and you understand how to determine and how to calculate the level of your losses and incomes using the indicated possibilities.
Watch the video to consolidate the material.
In conclusion, I want to add that in trading, as in life, those who have a large amount of knowledge, skills and practice succeed. My publications will help you build up your knowledge and deposit.
That's all for me, if you have interesting thoughts and questions, write in the comments and subscribe to my blog - in return you will receive new, interesting materials.
Best regards, Ruslan Miftakhov
One of the most important points in trading in the stock market is to correctly place an order to buy or sell shares. It would seem that it is difficult here. In fact, ITS QUIK has a number of different applications that will help you implement your strategies.
In addition to simple orders, ITS QUIK has a number of more complex orders that help to implement a specific algorithm for opening and closing positions. Such orders include stop orders, the essence of which is that they contain a certain condition, upon fulfillment of which a simple limit order is placed on the market.
Stop orders are of the following types:
Stop Limit;
Stop with linked;
Take profit;
Stop on execution;
Take profit by execution;
Stop price for another security;
Take profit and stop limit;
Take profit and stop limit on execution.
A stop-order "hangs" on the broker's server (and not on the exchange), and its life is not limited to one trading session. In particular, when placing a stop order, you can select the "until canceled" item, that is, your order will wait until the condition is fulfilled or until you cancel it yourself. This feature allows you to develop various combinations that allow you to automate trading, and eliminates the need to monitor the course of trading on a computer monitor in the “non-stop” mode.
We have reviewed the stop-limit and stop-limit with linked orders. Also, one of the most popular orders is the take-profit order.
It is worth clarifying here that there is a concept in exchange trading - Take profit(lit. Take profit), which means placing any order closing a deal above the current price (if Long is open) in order to fix the profit. In this case, it would be incorrect to identify the name of the order with the above-described trading action. .
Stop order of the type " Take profit »Implements the trailing stop principle in Quik. This principle is not to set a predetermined price target when closing a position with a profit, but to close it by moving a stop order to close a position, which is set at some distance from the local extremum reached by the price and moves as this extremum increases.
The size of the "bounce" from the extremum (from max with Long; from min with Short) can be set both in percent and in absolute values.
For example, you have a public Long. By placing a take-profit order, you set the size of your Stop Loss. Suppose a close order was placed if the price falls by 3% from the high. The price has reached 100 rubles per share - your Stop has pulled up to the level of 97 rubles. If the price went down, Stop stays in place and will be triggered if the price reaches the level of 97. If the price goes further up, stop automatically, without your intervention, “pulls up” higher. And so on ad infinitum - until the application works or is canceled (unless otherwise indicated in the "validity period" column).
This method is useful when a significant trend is expected, the ultimate goal of which is difficult to determine in advance. You only limit the size of the local correction (rollback in the opposite direction from the extreme); if this size is exceeded, you consider the trend to be over.
The window for entering stop orders can be called in many ways.:
1) click on the icon in the toolbar;
2) by calling the context menu (right mouse button) from the order book;
3) by calling the context menu from the name of the paper in Current parameter table
;
4) by double clicking the left mouse button in the window Stop orders table
;
5) by calling the context menu from Stop order tables
;
6) by calling the context menu from Tables of securities limits
(on the line of the corresponding paper);
7) with the function key F6.