Introducing Trader’s Best Friend: Trailing Stop Loss on Dhan

Hello Super Traders,

We are super happy when we are writing this, it’s one feature we had tons of requests from our users to bring and here it is now: Trailing Stop-Loss. As many would agree, this is every Super Trader’s best friend.

While building Dhan, we spoke to many traders and realised that the most important thing in trading is Managing your Position. From these discussions, we delivered one of the most popular features of Dhan - Manage Positions on web & App. Now, to make this trading journey even better, we are here with a new feature - Trailing Stop Loss.

We have always delivered and prioritised what is required for super traders to manage risk and make trading a better experience. We know, at the end of the day our super traders need two things - manage risk & make profits or minimise losses.

When we started building trading products, all of us were very clear about the fact that we want to provide everything and anything traders need to manage their position. As positions are the ones that make traders stand on their toes and give an adrenaline rush. They should have every tool in hand while tracking and managing positions, from the time they taken one till the time they exit.

With all this in mind, earlier we released the Manage Position feature for both This feature was completely made with inputs from the Dhan community. We have provided all the tools to manage your trade better.

  • Position details & summary
  • Convert to intraday/delivery
  • Exit Position or Add More
  • Reverse Order
  • Stop-Loss Nudge on naked position
  • Market depth
  • Transaction details

To improve the position management experience we are now coming up with Trailing Stop-Loss.

What is Trailing Stop-Loss?

A trailing stop is simply a Stop-Loss Order which combines both risk management as well as trade management. Hence the stop loss trail with the last traded price in one direction. This is significant when traders want to protect their gains in a position. This order type allows traders to avoid knee-jerk decisions based on emotions and helps them to execute pre-determined trading plans.

How to Place Trailing Stop-Loss?

You can place trailing stop loss at Dhan from Manage Position. To access Manage Positions click/tap on that position. If you have a naked position, you will see a nudge “Cover Your Risk”. When you click on the nudge, you will get three options to manage risk:

  • Stop-Loss : Simple SL-Market & SL-Limit
  • Trailing SL : The one we are talking about
  • Target: A simple limit order

When you click on Trailing SL, you need to input quantity, toggle for SL-L & SL-M, trigger price and trailing jump. We are sure that all input fields are explanatory but trailing jump. Trailing Jump is the price difference by which Stop-Loss (Trigger Price) will move when LTP moves by equal points.

Advantages of Trailing Stop-Loss

  • This order type will automatically sell your stock when share levels drop.
  • This order doesn’t limit your profits. The stock price can still rise and you’ll stay invested as long as prices don’t fall below your stop loss.
  • You’ll be able to enter any trailing stop-loss percent for a customised risk management plan. As it’s versatile you can edit it.

Example of Trailing Stop-Loss

Let us assume you have a long position in Tata Motors and the buying price is 410.00.
You place a trailing stop loss with a trigger price of 400.00 and a trailing jump of 2.00.
Now, if the LTP moves from 420.00 to 422.00, Stop-Loss (Trigger Price) will also move from 400.00 to 402.00. If LTP moves from 422.00 to 423.0, Stop Loss will not move, as the trailing Jump is 2.00 and the market price has moved 1.00. Now, if LTP drops, like from 423.00 to 421.00, Stop-Loss will not move, as it trails only in one direction i.e. direction of profit. And next, Stop-Loss will only move when the market price crosses 423.00 (here, only when LTP reaches 425.00), as 423.00 is now the reference point.

Trailing SL as a feature in the industry, is usually offered as a package with Bracket Order. We have consciously made the decision to bring it separate from Bracket Order and provide it on top of positions. As it will avoid dual leg execution during high volatility.

Hope you like this! Happy to get your feedback on this.

Happy Trading!

-Naman
Product @ Dhan

12 Likes

Great. As usual pls bring on web as well. Appreciate the pace at which Dhan is bringing on more and more features to help the traders.

3 Likes

Great features coming at fast pace. Will look to explore this further

5 Likes

@Naman @PravinJ
I am happy with all the new features you guys are bringing on your platform and trying to improve more on the bug side but until the chart data is not corrected all this of no meaning to me. I really want to trade with you guys but still, your mcx data problem on the tradingview chart is not solved.I really hope that you guys will work on that first and solve the issue.

3 Likes

Hi Dhan Team,

This feature is really awesome.

Keep updating your platform.

3 Likes

hi, thats an impressive feature, can this also be applied to holdings (as i understand, the video covers applying TSL on the positions which was entered on the given day), please can someone clarify?

Hi @HIR, this is work in progress at our end. We are separating MCX broadcast to different systems, will keep you posted.

Hi @eliteinvestment

Thanks for your kind words. For TSL, it can’t be applied for portfolio holdings - TSL is product designed for intraday traders.

1 Like

need on WEB

Sorry to say but looks like Dhan team is not much serious about web. Most of the features are launched only for mobile app.

Hi @aryan

Coming up on web in next 7-10 days. Our teams now run independent of each other, and wherever we go first, those features get rolled out first now.

2 Likes

@PravinJ Awesome!!! Thanks for your quick response.

Cool, thanks a lot for clarifying

This feature (Trailing stop loss) can we use in option trade also?
It can applied in all kind of intraday trade (Equity, Future, option)

Hi @Rohitsingh

Yes, it is available for Option Trading also.

I have one doubt what is main difference between trailing stop loss that recently launch or Drag and drop trail sl on tradingview directly you provide
So as you mention on video there is a trailing jump option so for example if i buy option at 100 and currently its traded on 130 i set stop loss on 125 and set Jump to 5 so every 5 point up in option my stop loss trail by 5 point?
On tradignview chart we have to drag and drop to trail stop loss and with this new feature we can automatically trail the stop loss right?

Hi @Rohitsingh

Yes you are right in this sense.

To trail SL in TradingView you have to it manually, it is like modifying the order.

This Trailing SL is automated, it will move as per jump with movement in LTP.

1 Like

Thank you so much for clearing my doubt you are the most active broker
I like that within hour you reply :innocent::pray::fire:

1 Like

Requesting please provide live training class about all new features of Dhan app.

Online class while market hours is better to understand like this features.

And others features in dhan trading app youtube videos are enough

1 Like

Hi Naman,

We need 25 min chart considering 375 minutes trading day. Open interest option should be added to indicator. OI crossover chart is required (plotting of OI of 2 different instruments to view crossover). Historical IVP chart is also required.

Pawan

@PravinJ
any timeline for when this separation will be done for mcx?