trailing stop

What it does: maintains a moving stop level that follows favorable price movement and triggers an exit when price reverses by a defined amount.

Typical use: protecting upside while letting profits run without constantly updating stops.

Key parameters: trailing distance (points or percent), quantity, and activation/trigger behavior (where available).

Tradeoff: reduces manual management, but can be shaken out by noise in choppy markets.

Example: long btc-usdc at 60,000 with a 1.5% trailing stop; if price rises to 62,000, the stop trails upward; if price then drops ~1.5% from the peak, the stop triggers an exit.