Percentage Stop
-
ATR Stop
-
Current Profit Locked
-
When Should You Use This?
Use trailing stops to protect profits on winning trades while letting them run. As price rises, the trailing stop follows — it never moves down. This locks in gains without capping upside.
How It Works
1
Enter Prices
Input your entry price and the current market price. The stop will trail below the current price.
2
Choose Method
Percentage-based (5-10%) is simplest. ATR-based adapts to volatility. Both are valid; ATR is preferred by professional traders.
3
Monitor & Adjust
The stop only moves up, never down. When price hits a new high, recalculate. When price falls to the stop, exit the trade.
Frequently Asked Questions
A trailing stop is a stop-loss that follows price in your favor. For a long position, it moves up as price rises but stays put when price falls. It protects profits while allowing the trade to continue.
Percentage is simpler but doesn't account for volatility. A 5% trail on a volatile stock might trigger too easily, while 5% on a stable stock might be too far. ATR adjusts for volatility.
Tight (3-5%) for momentum/day trades. Medium (5-8%) for swing trades. Wide (10-15%) for position trades. Tighter stops lock in more profit but exit sooner.
Most brokers support trailing stop orders. You can set a percentage or dollar trail when placing the order, and the broker adjusts automatically.
Trail from the highest price since entry (the high-water mark). Consider moving your stop to breakeven once the price has risen enough, then continue trailing from the high.