Which is more effective: a trailing stop or a step stop?

1. Classic Trailing Stop (Simple Explanation)

A trailing stop is a stop loss that moves with price as it goes in your favor.

How It Works

You set a level where trailing should start (e.g. 1.2R profit)

Once price reaches that level, the stop loss starts moving

The stop stays a fixed distance behind price (e.g. 0.6R)

So:

If price goes up → stop loss also moves up

If price drops → stop loss stays where it is

Easy Example

Price reaches +1.2R → trailing starts

Stop loss moves to 0.6R behind price

Price keeps going up → stop keeps following

Price reverses → stop stays and may get hit

Simple Way to Think About It

It’s like your stop loss is chasing price, but always keeping a safe distance.

If price runs, it follows.

If price turns, it stops and protects your profit.

1. Classic Trailing Stop (Simple Explanation)

A trailing stop is a stop loss that moves with price as it goes in your favor.

How It Works

You set a level where trailing should start (e.g. 1.2R profit)

Once price reaches that level, the stop loss starts moving

The stop stays a fixed distance behind price (e.g. 0.6R)

So:

If price goes up → stop loss also moves up

If price drops → stop loss stays where it is

Easy Example

Price reaches +1.2R → trailing starts

Stop loss moves to 0.6R behind price

Price keeps going up → stop keeps following

Price reverses → stop stays and may get hit

Simple Way to Think About It

It’s like your stop loss is chasing price, but always keeping a safe distance.

If price runs, it follows.

If price turns, it stops and protects your profit.

2. Step Stop (Simple Explanation)

A step stop moves your stop loss in fixed jumps, not continuously.

How It Works

The stop loss does not move all the time

It only moves when price hits certain profit levels

Easy Example

Price goes up → stop loss stays still

Price reaches a set level (e.g. +5 profit) → stop jumps up

Price keeps rising → stop stays still again

Price hits next level (e.g. +10 profit) → stop jumps again

Simple Way to Think About It

It’s like your stop loss moves in steps, not smoothly.

The most rational approach might be to combine "Classic Trailing Stop and Step Stop" methods (Hybrid Model), which provides the most efficient protection at different phases of the trend.

The logic behind this approach is as follows:

Early Phase (between 1R and 2R): The trend is not yet mature. Pullbacks may occur. With Classic Trailing, you follow the price closely and in a "fluid" manner.

Mature Phase (after 2R): The trend has strengthened (momentum has likely increased). Step Stop can be used to avoid stop-loss orders during small corrections and to lock in profits in blocks.

For the step stop you didnt state what happens if price starts falling

What happens when price starts falling?

With Step Stop (Step Trailing Stop), the Stop Loss does NOT move backwards. It only moves forward in steps and then stays there.

Here’s the logic:

Price moves in your favor → SL moves up in steps ✅

Price starts falling → SL stays where it last moved ❌ (it does NOT go down)

Simple Example (Buy Trade)

Let’s say:

Entry = 1.1000

Step interval (stI) = 20 pips

Step size (stS) = 10 pips

Movement:

Price goes to 1.1020 (+20 pips)

→ SL moves from maybe 1.0950 → 1.1010

Price goes to 1.1040 (+40 pips)

→ SL moves to 1.1020

Now price starts falling from 1.1040 → 1.1020

👉 What happens?

SL stays at 1.1020

If price hits it → trade closes in profit

can you show us an example of how to use it with images, which platform has this step stop?

This video is marketing a bot which is probably a scam and doesnt work

What does this video have to do with a trailing stop loss, this kind of marketing is not allowed by the moderators of this platform you should take it down.

Ohh, I’m sorry. I didn’t know it was marketing a bot.