Trailing stop loss

anandaravindan
I was looking at this thread https://kite.trade/forum/discussion/1693/trailing-stoploss-not-working-as-expected#latest

The discussion was closed so created a new one, the final explanation from @Nikhil.A is

Nikhil.A
@Newtrade That's not how it works, I'm afraid. If your trailing value is set at 2, that means that the SL will trail the price on every 2 rupees BY 2 rupees. So, the 'bracket' size remains the same, i.e., the difference between the target and stoploss remains the same.

I don't think what @Nikhil.A is valid, in case his explanation is correct, the target will be triggered (used to end position) because whenever the stop is moved the target is also moved up so the only way the position will be closed is when the stop loss gets triggered. So does that mean if you use trailing stop loss the target will never be triggered and the bracket order is just a cover order with limit price and trailing sl.

There is another scenario when the target will be triggered, it is when the trailing stop values is less than the price and target, in that case trailing stop loss is never gonna work anyways.

Please clarify how the Bracket order trailing stop loss works.

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