Stops loss orders and trailing stops can be effective ways to reduce the impact of a potential loss. The video below demonstrates how to build a hotkey in the WT Sim for each of these methods. If you are looking for an explanation of how and why to use a trailing stop, please see the guide here.
Remember: STOP ORDERS DO NOT TRIGGER PREMARKET AND ONLY TRIGGER DURING MARKET HOURS (9:30AM - 4PM EST).
As an example, below is an image demonstrating how to create a trailing stop of 10 cents to increase every 5 cents that the stock moves.
- In this case, if the stock moves 5 cents, the stop loss will then jump 5 cents closer to the current price.
- A trailing stop implemented at 3.00 will be set at 2.90 and will stay there until the price reaches 3.05, at which point the stop would move up to 2.95.
Remember: the trail increment is the amount the stock needs to move to trigger the trail amount to move. If you do not select the trail increment, it will update on every price increase of once cent.
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