Advanced Trade Protection

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Video Transcription:

Hello Traders, welcome to the cTrader tutorial and the Third Module Trading. In this lesson we’re going to talk about Advanced Trade Protection. And we’re going to go to the EUR/USD one hour chart for this demonstration. So the first thing is we’re going to do is we’re going to open a three lot buy trade on the EUR/USD. Now what we’re going to learn here is, well we are going to learn how to put on different profit targets to scale out of the trade and how to put on a trailing stop-loss. So to open the window for advanced protection, you have to click on this shield icon right here to the left side of the order or the position information. And as you can see, you can choose up to four profit taking levels. Now right here is the remaining quantity of the position and we have a 100% because we don’t have a take profit level just yet. Let’s choose one for example.

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We wanna take the first 20K at 10 pips. Then we wanna take the second 20K at 20 pips, which will mean that we just got rid of 40K out of 300K. Then we wanna take 100K at 30 pips and the rest of the position which would be 160K at 40 pips okay? 160K. As you can see, we have a 0% remaining because we already took out 20K, 30K, a 100K and our 160K on the four profit taking levels. So this is one way of scaling out of your position, of course, you can scale out manually but this is the best way to do it because once you use the advanced protection for your positions you are going to be able to, well just manually move up and down your take profit levels. We have a stop loss at…well we haven’t defined a stop loss. So what we are going to do is we are going to create a trailing stop-loss for our position and we want the trailing stop to be to be triggered when we take the first profit target.

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That’s 10 pips and we want the stop-loss to trail for 10 pips. This means that when price moves up 10 pips and we hit the second profit target level, we are going to move to break even. When we hit the third profit target level, we are going to move 10 pips up etc. Well, we can choose here to move a trailing stop or move stop-loss to break even. I’m going to choose a trailing stop, and I’m going to apply it to our trade. Now because this is the one hour chart, you are going to see that it’s very cluttered. So we are going to move back a little bit to the 15-minute chat, maybe even to the 5-minute chat and we are going to choose a stop-loss level.

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Now I’m going to zoom out a little bit. Maybe that’s a little too much, and as you can see right here we have…well we have the first take profit level right here, the second right here, third and fourth and we have the stop loss. Now the cool thing about trading with the cTrader is that you can see right here that I am risking 19 pips to make overall, 10 plus 20 that’s 30, plus 30 that’s 60 and that’s it plus 40, a hundred pips overall. And I’m risking £388 to make around £680 which is an average risk to reward ratio, but remember that this is just a lesson on how to use Advanced Protection, and not how to trade the EUR/USD. So basically this is how you are going to be using the Advanced Protection for your position and choosing different profit targets to scale out of your position and how you are going to be activating a trailing stop for your positions.

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