Stop Loss and Take Profit in Forex (User Guide)
Stop Loss and Take Profit in Forex. You can find Expert Advisor Studio on our website: https://eaforexacademy.com/s/qsJpF
Following on from the last video, I want to talk more about Stop Loss and Take Profit in Forex as part of the strategy properties. Stop Losses and Take Profits in Forex are an essential part of any trading strategy and Expert Advisor.
EA Studio has the capability to build in the 2 strategies very easily. And how we do that is we click on the strategy properties, and as you can see below our entry lots, we have our Stop Loss and our Take Profit.
Now, when you generate your strategies, you can select whether or not to use a Stop Loss and a Take Profit, and you have the options of Always use, May use, and Do not use. Now, in this case, this strategy was generated with Stop Loss and Take Profit that we set as Always use.
And after doing many calculations within the strategy, it came up with the best options of a Stop Loss of 88 pips and a Take Profit of 46 pips. For those of you who are not familiar with what a pip is, a pip is just a unit of measurement that shows you the change in value between 2 currencies.
It is usually the 3rd and 4th numbers after the decimal point, except in the case of currencies with the JPY, currencies that trade the JPY, in which case it is the 1st and 2nd digits after the decimal point.
Coming back to the strategy properties, the first thing that you'll see is the entry lots. Now, when trading, we always talk in lots. One full lot of currency is 100,000 units of the base currency.
So in this case, we have an entry lot size of 0.1, so this would be equal to 10,000 units of the base currency. Now, as mentioned, it's very important to use Stop Losses and Take Profits.
Of course, it is your decision whether or not you want to use them but it is there to protect you. In the strategy properties, you can change your value for Stop Loss and Take Profit, you can change these if you wish to and it may change your balance chart.
But as I mentioned earlier, the Stop Loss and this Take Profit figure has been put in by Expert Advisor Studio while it was doing the calculations and it found that these were the best parameters using the historical data and the back tester.
Why is it so important to have Stop Losses and Take Profits in Forex?
As I mentioned earlier, the Stop Loss is there to protect you in the case that trade goes against you. If it's going too negative, the Stop Loss will kick in and it'll close your trade limiting your losses.
A Take Profit is also very important because when you're trading and the trade is going in your favor, you want it to close on a profit because you don't know if it may turn around a little bit further on and actually go against you and you end up in a loss.
So you take your profit and then you know that that money is banked.
Remember, Take Profits and Stop Losses in Forex are part of a good money management strategy and money management is the key to trading success. It really will help you stay in the markets for longer.
And again, in the strategy properties, you can change the settings, you can also change your Stop Loss to either Fixed or Trailing. Fixed is where your Stop Loss is fixed in one position, and Trailing is where your Stop Loss will actually trail the price of the asset so that the Stop Loss is always the same distance from the current price.
These are all fundamentals of trading and you really should familiarize yourself with them and be very aware of what they are what they represent, and how they work.
Our Trading Packages: https://eaforexacademy.com/s/NSsvJ
★ Test EA Studio with a 15-days trial and get the FREE course:
https://eaforexacademy.com/s/qsJpF
� If you have any questions about the Stop Loss and Take Profit in Forex, please, write in our trading Forum, where you will receive an answer within 12 hours.
https://eaforexacademy.com/s/XzHqM
All our online algorithmic trading courses are available on our website:
https://eaforexacademy.com/s/KPMvz
Let’s connect on social media:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
Following on from the last video, I want to talk more about Stop Loss and Take Profit in Forex as part of the strategy properties. Stop Losses and Take Profits in Forex are an essential part of any trading strategy and Expert Advisor.
EA Studio has the capability to build in the 2 strategies very easily. And how we do that is we click on the strategy properties, and as you can see below our entry lots, we have our Stop Loss and our Take Profit.
Now, when you generate your strategies, you can select whether or not to use a Stop Loss and a Take Profit, and you have the options of Always use, May use, and Do not use. Now, in this case, this strategy was generated with Stop Loss and Take Profit that we set as Always use.
And after doing many calculations within the strategy, it came up with the best options of a Stop Loss of 88 pips and a Take Profit of 46 pips. For those of you who are not familiar with what a pip is, a pip is just a unit of measurement that shows you the change in value between 2 currencies.
It is usually the 3rd and 4th numbers after the decimal point, except in the case of currencies with the JPY, currencies that trade the JPY, in which case it is the 1st and 2nd digits after the decimal point.
Coming back to the strategy properties, the first thing that you'll see is the entry lots. Now, when trading, we always talk in lots. One full lot of currency is 100,000 units of the base currency.
So in this case, we have an entry lot size of 0.1, so this would be equal to 10,000 units of the base currency. Now, as mentioned, it's very important to use Stop Losses and Take Profits.
Of course, it is your decision whether or not you want to use them but it is there to protect you. In the strategy properties, you can change your value for Stop Loss and Take Profit, you can change these if you wish to and it may change your balance chart.
But as I mentioned earlier, the Stop Loss and this Take Profit figure has been put in by Expert Advisor Studio while it was doing the calculations and it found that these were the best parameters using the historical data and the back tester.
Why is it so important to have Stop Losses and Take Profits in Forex?
As I mentioned earlier, the Stop Loss is there to protect you in the case that trade goes against you. If it's going too negative, the Stop Loss will kick in and it'll close your trade limiting your losses.
A Take Profit is also very important because when you're trading and the trade is going in your favor, you want it to close on a profit because you don't know if it may turn around a little bit further on and actually go against you and you end up in a loss.
So you take your profit and then you know that that money is banked.
Remember, Take Profits and Stop Losses in Forex are part of a good money management strategy and money management is the key to trading success. It really will help you stay in the markets for longer.
And again, in the strategy properties, you can change the settings, you can also change your Stop Loss to either Fixed or Trailing. Fixed is where your Stop Loss is fixed in one position, and Trailing is where your Stop Loss will actually trail the price of the asset so that the Stop Loss is always the same distance from the current price.
These are all fundamentals of trading and you really should familiarize yourself with them and be very aware of what they are what they represent, and how they work.
Our Trading Packages: https://eaforexacademy.com/s/NSsvJ
★ Test EA Studio with a 15-days trial and get the FREE course:
https://eaforexacademy.com/s/qsJpF
� If you have any questions about the Stop Loss and Take Profit in Forex, please, write in our trading Forum, where you will receive an answer within 12 hours.
https://eaforexacademy.com/s/XzHqM
All our online algorithmic trading courses are available on our website:
https://eaforexacademy.com/s/KPMvz
Let’s connect on social media:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
