If you're looking to enhance your trading strategy, understanding how the Parabolic Trailing Stop works in MetaTrader 5 is essential. This tool can help you lock in profits and minimize losses, adjusting your Stop Loss based on market conditions.
When Does the Stop Loss Value Change?
The Stop Loss value for an open position will adjust under the following conditions:
- The Parabolic SAR value at index 1 is greater than the open price for buy trades, or less for sell trades;
- The Parabolic SAR value at index 1 is lower than the Low of the bar at index 1 for buy trades, or higher for sell trades;
- The Parabolic SAR at index 1 is established after the position was opened.
Key Inputs for the Parabolic Trailing Stop
Here’s a quick rundown of the inputs you’ll be working with:
- base_tf - This is the timeframe for the Parabolic SAR indicator that will be used for your trailing Stop Loss;
- SAR_step - The price change step (a parameter of the Parabolic SAR, with a default setting of 0.1);
- maximum_step - The maximum price change (another parameter of the Parabolic SAR, default is 0.11).
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