October 4, 2018

All eyes on the Trailing Stop Loss

October 4, 2018
2 min

We want to be great at what we do. And we think that being great at what we do starts with listening to our users.

That’s why we like to operate with our ear to the ground: we want to know what you, our users, want. And once again, we’ve heard your feature requests. So, we’re proud to present the newest Capitalise feature: trailing stop loss.

For anyone who’s not familiar, trailing stop loss is an order where the stop loss is set according to a percentage or nominal amount below market value rather than as a simple nominal amount. That means that when prices increase, the stop loss follows suit, effectively “trailing” it. That way, as an investor, you’re able to get all the potential upsides of your investments while protecting yourself from the possible downsides.

When it comes to the Capitalise Platform, you can use trailing stop loss only per hit. Note the difference between this and the total stop loss feature, which allows you to input a stop loss for the entire strategy.

Now, you’ll be able to use our trailing stop loss feature in your exit strategies. So, you could write something like “close position at trailing stop of $10,” which would close the trade at any point when the hit’s P/L drops by $10 USD. Alternatively, you could opt for a percentage by writing “close position at trailing stop of 10%,” which would close the trade when the hit’s P/L loses 10 percentage points (example: a drop from 30% P/L to 20% P/L would trigger the trailing stop loss).

To get the most out of this sweet new feature, you’ll want to use it in combination with other conditions for loss and/or profit. So, for instance you could type something like: Close position if the profit is at $100 or the loss is at $30 or at trailing stop of $20.

But that’s enough talk (well, text) for one day. Go ahead and try it out for yourself on our platform.

Dori Megori

Capitalise - Head of Product

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