Automated Strategies

BB Trailing Stop

Developer: FXCM

BB (Bollinger Band Trailing Stop) is a custom money management strategy for Trading Station that adjusts an existing stop or creates a new stop (if none exists) using the Bollinger Bands indicator as a reference.

Many traders turn to Bollinger Bands to help decide where to manually place stop orders for their positions. But with the BB Trailing Stop strategy, stops are automatically created/adjusted for you based on Bollinger Band levels in real time.

*Note – the fields within the ‘FIFO Settings’ parameters section of the strategy apply to accounts based in the US only (FXCM LLC accounts). If your account is non-US, the strategy will manage your existing stop or create a stop if none exists regardless of what these parameters are set to. 

Inputs

The following are inputs available in the strategy:

Position Settings:

  • Trade Ticket: Select which position will have the stop loss applied. (Ticket ID is located inside the ‘Open Positions’ window.
  • Account: Account to trade on.

Bollinger Band Settings

  • TF: Time frame (‘t1’, ‘m1’, ‘m5’, etc.) that the Bollinger Band is based on.
  • NumberofPeriods: Specify the number of periods used to calculate Bollinger Band indicator values
  • NumberofStandardDeviation: Specify the number of periods used to calculate Bollinger Band indicator values.
  • Pip Offset: Pip Offset set to ‘0’ would set the stop loss order to the exact price of BB for the current bar. Pip Offset set to a positive number (for example, 5) would set the stop loss 5 pips beyond the current BB value. Pip Offset set to a negative number (for example, -5) would set the stop loss 5 pips before the current BB value. Regardless of whether the position is a buy trade or a sell trade, a Pip Offset set to a positive number will result in a stop set further away than the current BB value.
  • Only Positive Stop Movement?: Select ‘No’ if you want your stop to move to any value that Bollinger Band generates. Select ‘Yes’ if you want to restrict your stop to move only in a positive direction (So, for buy positions, your stop will only move to a higher price… and for sell positions, your stop will only move to a lower price. Any Bollinger Band values that would move your stop further from your trade’s entry price will be ignored).
  • Stop Moves Intrabar?: Select ‘No’ if you want your stop loss to move only when a new bar is formed. Select ‘Yes’ if you want your stop loss to move as Bollinger Band moves in real time (intrabar). *Please note that if ‘Yes’ is selected, that your stop loss will only move if the Bollinger Band has moved 0.5 pips since the last time the stop loss was moved.

FIFO Settings (Used Only for US-based Accounts):

  • Manage Existing Stop?: Select ‘yes’ if you already have an existing stoploss that you want the strategy to manage. Select ‘no’ if you want the strategy to create a new stoploss that the strategy will manage. ***This input is only used for US-based Accounts***
  • Stop OrderID: Existing Order you would like strategy to actively move. Only used if you selected ‘yes’ above for Existing Stop. ***This input is only used for US-based Accounts***

Other Settings

  • MagicNumber: Sets a unique identifier for each strategy instance. This should be set to a different number for each instance of the program that is applied.
  • Debug: When set to Yes, this strategy will save a more detailed Log of the strategy’s actions. If you experience an issue with the strategy, this allows FXCM to retrieve a Log file to investigate the details.
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This Indicator is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).