Trailing Stop
Ride the move, then lock it in.
Buy once, then trail a stop a fixed percentage below the highest price seen. When a pullback hits it, the loop sells and stops.
How it works
- 01The loop buys once.
- 02A stop trails your chosen % below the highest price seen — it only ever moves up.
- 03Every new high lifts the stop, locking in more of the gain.
- 04A pullback to the stop sells the position, and the loop stops.
Buy once, then trail a stop a fixed % below the highest price seen — the trail only ever moves up. When a pullback hits it, the loop sells and stops. One position, one exit, most of the peak kept.
The math, on paper
- Buy $100 at $100
- 1.000 coin
- Peak $118 → 4% trail locks
- $113.28
- Sold on the pullback
- +$13.28 gross
- Modeled round-trip fees (0.02%/side)
- ≈ $0.04
- Modeled net profit
- ≈ +$13.24
Worked numbers assume 0.02% per side (the current Binance.US fallback schedule) and exclude spread and slippage. They are illustrations, not forecasts; fees vary by exchange and tier.
Best for
A single position in a strong rally — capture as much of the upside as possible past your target.
When it struggles
Volatility can shake you out early: a normal wobble hits a tight trail before the real move starts. And when the price falls below your entry, the trail stands down (see Good to know) — the stop-loss is then the only exit.
Good to know
With the no-loss guard on, the trail will not sell below your fee-inclusive break-even; it re-arms above it. The only exit below entry is the stop-loss, which the wizard starts at 25% and you can change. A stop can fill worse than its trigger during gaps, low liquidity or outages.
What you set
- Trail
- How far below the peak to sell, e.g. 3–4%
- Order size
- The one buy
- Stop-loss
- On at 25% by default — change it knowingly
- Ride the swing
- Optional: wait for a bounce before the entry
Questions
What is a trailing stop in crypto?
A trailing stop is a sell level that follows the price up at a fixed distance below its highest point and never moves down. If the price rises, it locks in more of the gain; when the price pulls back by that distance, it sells.
What is the difference between a trailing stop and a stop-loss?
A stop-loss sits at a fixed level below your entry and limits a loss. A trailing stop moves up with the price and protects a gain. A Trailing Stop loop uses both: the trail for the exit on the way up, the stop-loss as the floor.
Why didn’t my trailing stop sell below my entry?
With the no-loss guard on, the trail stands down below your fee-inclusive break-even and re-arms above it, so a small wobble does not turn into a realized loss. Below entry, only the stop-loss sells.
Related strategies
Educational content, not financial advice. Crypto prices can fall quickly and any loop can lose money. Risk disclosure.