How to Set A Trailing Stop on Webull Application. - Transparent Traders (2024)

FAQs

How to Set A Trailing Stop on Webull Application. - Transparent Traders? ›

On Webull, we only support placing trailing stop orders during market hours. On Webull, a trailing stop order expires at the end of each trading day. If your order is not filled, you need to place the order again on the following trading day.

On Webull, we only support placing trailing stop orders during market hours. On Webull, a trailing stop order expires at the end of each trading day. If your order is not filled, you need to place the order again on the following trading day.

To set the trailing stop, one has to execute the open position context menu command of the same name in the "Terminal" window. Then one has to select the desirable value of distance between the Stop Loss level and the current price in the list opened. Only one trailing stop can be set for each open position.

Take profit and stop loss order is available for options trading on Webull. Just like in trading stocks, the Take-Profit/Stop-Loss (TPSL) order is a powerful tool for investors to protect their options positions, especially in a volatile market.

Trailing stop-loss placement is usually specified by setting a price the desired distance away from the market price, in line with how much capital you're willing to risk on the trade. The stop-loss will then remain this distance from the market price while the price moves in your favour.

A Trailing stop loss order creates a market order (close position at market price) when the trailing stop loss level is reached. On the other hand, a trailing stop limit order will send a limit order once the stop price is reached, meaning that the order will be filled only on the current limit level or better.

The best trailing stop percentage sits between 15% and 25%. This range consistently shows the best retrurn-to-risk while maintaining a reasonable profit per trade and win rate. Based on this analysis, a trailing stop between 15% to 25% would produce the most stable equity curve growth.

A trailing stop can also be advantageous over a regular stop-loss if the market price moves in your favour but then reverses, as your stop-loss will have followed the favourable price moves but will not move in the opposite direction.

Trailing stop loss orders are established to function automatically with stockbrokers and their investing software. Technical indicators can be used to put in a trailing stop loss. Contrary to a regular stop loss, a trailing stop loss moves according to changes in price levels of a financial instrument.

Chandelier Exits are another common ATR trailing stop-loss indicator that can be applied to price charts, as well as the Parabolic SAR stop-loss indicator, although it is not based on ATR. A moving average can also function as a trailing stop-loss indicator.

Do professional traders use trailing stop loss? ›

One of the main reasons professional traders don't use hard stop losses is because they use mental stops instead. The advantage of this is that you don't have to 'give away' where your stop loss is by placing it in the market.

A trailing stop loss is better than a traditional (loss from purchase price) stop-loss strategy. The best trailing stop-loss percentage to use is either 15% or 20%

The main difference between these two is that Trailing Take Profit takes the profit in any case (although it might be later annihilated by Trailing Stop). Thus, Trailing Take Profit reduces the risks that might've occurred using Trailing Stop alone.

Stop-loss and stop-limit orders can provide different types of protection for both long and short investors. Stop-loss orders guarantee execution, while stop-limit orders guarantee the price.

A take-profit order is used to lock profit on an existing position once a specified price is reached. It fills as a limit order once triggered. A stop-loss order is designed to prevent further losses on the existing position once a specified price is reached. It fills as a market order.

A stop limit order is an instruction to submit a buy or sell market order if and when the client-specified stop price is hit. A stop order is not guaranteed a specific execution price and may execute significantly away from its stop price.

Stop Loss and Take Profit are supported on all order types: Limit, Market, Stop and Trailing Stop. A stop loss (SL) is a price limit entered by a trader. When the price limit is reached the open position will close to prevent further losses.

Most traders use take-profit orders in conjunction with stop-loss orders (S/L) to manage their open positions. If the security rises to the take-profit point, the T/P order is executed and the position is closed for a gain.

Yes, you can, if you have positive cash balance. It is possible to place 2 orders of the opposite transaction type (buy/sell) in the same instrument, even if you don't have the required margin for the 2nd order.

The 3-Day Trailing Stop Rule becomes active when 70% to the price target. The cutoff setting is useful here to make the chart look less busy. The Setup Day and subsequent Trigger day occur a few days later signaling an exit from the trade.

Do trailing stops work pre market? ›

Stop orders will only trigger during the standard market session, 9:30 a.m. to 4 p.m. ET. Stop orders will not execute during extended-hours sessions, such as pre-market or after-hours sessions, or take effect when the stock is not trading (e.g., during stock halts or on weekends or market holidays).

Trailing stops are effective because they allow a trade to stay open and continue to profit as long as the price is moving in the investor's favor. This may help some traders cope psychologically with volatile markets.

Suppose you were to enter a long trade at $40, with a 10-cent trailing stop at $39.90. If the price then were to move up to $40.10, the trailing stop would move to $40. At $40.20, the trailing stop would move to $40.10. If the price then were to move back down to $40.15, the trailing stop would stay at $40.10.

For example, if the last traded price is $15, you set the trail to $1 and the STP to $13 and the limit to $12.50, 50 cents below the stop price, the stock then rises to $17 your new STP price will be $16, and the order will be triggered if the stock price falls to $16 with a limit price of $15.50.

According to FINRA rules, you're considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period.

Disadvantages: There is no guarantee that you will receive the price of your stop-loss order. Some brokers do not allow for stop-loss orders for specific stocks or exchange-traded funds (ETFs). Volatile stocks are difficult to trade with these orders.

This rule means that you must never risk more than 1% of your account value on a single trade. You can use all your capital or more (via MTF) on a trade but you must take steps to prevent losses of more than 1% in one trade.

The Percentage Rule

Some traders believe in determining a percentage of loss. For example, an investor may choose to place a stop-loss order at 10%, that is the stop loss will be triggered when the stock price reaches 10% below the buy price. This is one of the popular stop-loss strategies.

Most traders using trailing stops fail by placing the orders very tight or very wide. For example, when you place the stop at about 3%, it can be triggered easily since assets tend to make these fluctuations. On the other hand, if you place it at 20%, it means that it will be too wide.

Market Makers Can See Your Stop-Loss Orders

Most newbies place stops that are visible to market makers. So market makers move the stock to the stop-loss levels and take them out. Especially during low volume trading in the middle of the day.

Do traders hunt for stop losses? ›

Bottom Line. Traders should be aware that stop loss hunting does go on. Large institutional trading houses use their sophisticated software and market analysis to target price level. Major financial houses seek to cause market action to benefit from the destruction of competing trades.

The trailing stop price will be calculated as the bid price plus the offset specified as a percentage value. The system automatically chooses the ask price for Buy orders and the bid price for Sell orders. - ASK/BID T. The trailing stop price will be calculated as the bid price plus the offset specified in ticks.

Stock Trader explained that stop-loss orders should never be set above 5 percent [3]. This is to avoid selling unnecessarily during small fluctuations in the market. Realistically, a stock could fall by 5 percent midday, but rebound. You wouldn't want to sell prematurely and lose out on potential gains.

Do Stop-Limit Orders Work After Hours? Stop-loss orders will only be triggered during standard market hours, which is generally 9:30 a.m. to 4 p.m. EST. They will not get executed during extended-hours sessions or when the market is closed for weekends and holidays.

When you find a stock that has better fundamentals than the one you are holding on to now, it is a good time to exit the stock. This also means that the company is doing better and coming up with better products or services that can grab better opportunities.

The trigger price is the point at which your buy or sell order is made available to the exchange servers for processing.

With a buy trailing stop order, the stop price follows, or trails, the lowest price of a stock by a trail that you set. If the stock rises above its lowest price by the trail or more, it triggers a buy market order and is executed at the best price currently available.

Stop limit orders allow you to enter two prices: a stop price and a limit price. The order is triggered when the contract has traded at or through the stop price, and then becomes a limit order which will trigger at the limit price, if and when that price is reached.

The trailing stop is preferred over the stop limit because there's protection against very fast swings. Since there's a trailing stop set for the end of day, the presence of these cases are already much more minimized. At the end of the day, a loss is a loss.

Choosing a 20% trailing stop is excessive. Based on the recent trends, the average pullback is about 6%, with bigger ones near 8%. A better trailing stop loss would be 10% to 12%. This gives the trade room to move but also gets the trader out quickly if the price drops by more than 12%.

Is trailing stop profitable? ›

Trailing stops are effective because they allow a trade to stay open and continue to profit as long as the price is moving in the investor's favor.

The Bottom Line

Stop-loss and stop-limit orders can provide different types of protection for both long and short investors. Stop-loss orders guarantee execution, while stop-limit orders guarantee the price.

Disadvantages of Stop-Loss Orders

The main disadvantage is that a short-term fluctuation in a stock's price could activate the stop price. The key is picking a stop-loss percentage that allows a stock to fluctuate day-to-day, while also preventing as much downside risk as possible.

A stop-loss order allows you to specify the lowest price at which you want to sell your stocks while minimizing your losses. A limit sell order, on the other hand, permits you to set a good price for your stocks above which they can be sold. You can place these two orders on your stocks at the same time.

Bottom line. Your choice of market order or limit order depends on the specific circ*mstances of the trade, but if you're worried about not getting a certain price, you can always use a limit order. You'll ensure that the transaction won't occur unless you get your price, even if it takes longer to execute.

A limit order is visible to the market and instructs your broker to fill your buy or sell order at a specific price or better. A stop order isn't visible to the market and will activate a market order when a stop price has been met.

Webull is owned by Fumi Technology, with headquarters in New York City and a tech team in Hunan, China. The company was founded by Wang Anquan, a Chinese executive with stints at Alibaba and Xiaomi on his resume.