Trailing Stops — Protecting Gains as Price Rises
A trailing stop follows the highest price by a set percentage, locking in gains while letting winners run. How to choose the callback and combine it with a target.
What a trailing stop is
A trailing stop is a stop-loss that follows the highest price reached. Enter at 70k, set a 5% trail: as price climbs to 75k, the stop sits at 71.25k; at 80k, it rises to 76k; at 85k, to about 80.75k. If price then falls through the trailing level, it sells automatically.
The benefit: you let a winner keep running while protecting the gains you have made if it reverses.
Trailing vs fixed stops
A fixed stop stays put — set at 68k, it stays at 68k even as price runs to 75k, so a reversal gives back the whole move. A trailing stop moves up with price, so more of the gain is protected as the trade works.
Choosing the callback
- 2–5%: tight — protects more, but ordinary noise can stop you out early.
- 5–10%: a balance for most crypto positions.
- 10%+: loose — lets winners run far, but gives back more before triggering.
A common choice for crypto is around 5–8%.
A key detail
The callback trails from the highest price reached, not from your entry. Measuring it from entry is a common setup mistake that defeats the purpose.
Combining with a target
A useful combination: take a fixed profit on part of the position at a first target (say sell 30% at TP1), and let the rest ride with a trailing stop. You lock in some gains while giving the remainder room to run with protection.
fastbot supports trailing stops on Binance, and stop orders across DNSE and eToro, so protection happens automatically. Learn more.