Trailing Stop
A dynamic stop-loss that moves up with the stock price, locking in profits as the trade moves in your favor while still protecting against reversals.
Explained Simply
A trailing stop rises as the stock rises but never falls. If you set a 5% trailing stop on a $100 stock, the stop starts at $95. If the stock rises to $120, the stop moves to $114. If the stock then drops to $114, you're stopped out with a $14 profit instead of a potential loss. Trailing stops are excellent for capturing trend moves while protecting against sudden reversals.
How Tradewink Uses Trailing Stop
Tradewink's exit strategy system uses ATR-based trailing stops (default: 2x ATR). As positions move into profit, the trailing stop ratchets up. The DynamicExitEngine (ML-driven) can also adjust trailing stop distances in real-time based on momentum, volume, and volatility changes — tightening when momentum fades and loosening during strong runs.
Related Terms
See Trailing Stop in action
Tradewink uses trailing stop as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.