Automated Strategies

Moving Average Trailing Stop

Developer: FXCM

Want to adjust your stop automatically based on the moving average?

Moving Average Trailing Stop is a custom money-management strategy that adjusts an existing stop or creates a new stop (if none exists) using the moving average indicator as a reference.

Many traders rely on Moving Averages to help decide where to place manual stop orders for their positions. But with the Moving Average Trailing Stop strategy, stops are automatically created or adjusted based on MA levels in real time.

*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 new stop if none exists regardless of these parameters. 

INPUTS

The following are inputs available in the application:

  • Trade Ticket: Select which position will have stop loss applied. (Ticket ID is located inside the ‘Open Positions’ window).
  • Account: Account to trade on.
  • TF: Time frame (e.g., t1, m1, m5) that the moving average is based on.
  • MA_Type: Selects the moving average type.
  • Number of Periods: Set the number of periods for the MA calculation.
  • Pip Offset: Pip Offset set to ‘0’ sets the stop loss order to the exact price of MA for the current bar. Pip Offset set to a positive number, 5 for example, sets the stop loss 5 pips beyond the current MA value. Pip Offset set to a negative number, -5 for example, sets the stop loss 5 pips before the current MA value. Regardless of whether the position is a buy trade or a sell trade, a Pip Offset set to a positive number results in a stop set further away than the current MA value.
  • Only Positive Stop Movement: Select ‘No’ if you want your stop to move to any value that the moving average generates. Select ‘Yes’ if you want to restrict your stop to move only in a positive direction. (For buy positions, your stop will only move to a higher price. For sell positions, your stop will only move to a lower price. Any moving average values that move your stop further from your trade’s entry price are 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 the moving average moves in real time (intrabar). If ‘Yes’ is selected, your stop loss will only move if the moving average has moved 0.5 pips since the last time the stop loss was moved.
  • Manage Existing Stop?: Select ‘Yes’ if you already have an existing stop loss that you want the strategy to manage. Select ‘No’ if you want the strategy to create a new stop loss that the strategy will manage. This input is only used for US-based accounts.
  • Stop OrderID: Existing order you would like the strategy to actively move. Only used if you selected ‘Yes’ above for existing stop. This input is only used for US-based accounts.
  • 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.
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 Automated Strategy is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).