Trailing Stop
A trailing stop automatically adjusts your stop loss as price moves in your favor. It trails price by a fixed amount or percentage, locking in profits while letting winners run.
Understanding the Concept
Trailing stops solve a classic problem: when do you exit a winning trade? Exit too early, you leave money on the table. Exit too late, you give back profits. Trailing stops follow price up (for longs) and only trigger when price reverses by your set amount. They're mechanical, removing emotion from the exit decision. The challenge is setting the right distance—too tight and normal volatility stops you out. Too loose and you give back too much profit. ATR-based trailing stops adjust for volatility.
Real-World Example
You buy Solana at $100 with a 5% trailing stop. SOL runs to $150—your stop trails up to $142.50 (5% below $150). Price reverses to $142, triggering your stop. You lock in 42% profit instead of watching it fall back to $100.
How Strykr Helps
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