Trailing Stop
An exit that follows the position's best profit and triggers on the give-back — letting winners run, but not round-trip.
What it means
A trailing stop ratchets with the trade: it remembers the peak profit and exits when price gives back a set amount from that peak. Unlike a fixed target it has no ceiling — a runner can keep running — but it guarantees a winner never becomes a full loser.
The give-back distance is the tuning knob: tight trails get shaken out by normal noise; loose trails return too much. Scaling the distance to current volatility is the common refinement.
Why traders care
- Captures trend tails that fixed targets amputate.
- Enforces the discipline everyone claims to have: never let a big winner die.
In a TraderWe strategy
if MaxProfitPct >= 2 and MaxProfitPct - ProfitPct >= 1.5:
Sell()Once up 2%+, exit if 1.5% of the peak is given back.
Related terms
Educational content, not investment advice. Engine details describe how TraderWe computes this value; other platforms may define it differently.