Why are traders all using trailing stops?
What is the hardest decision when trading in the crypto world? Many would say — when to exit.
You might have experienced this situation: after finally catching a wave of market movement, your account shows a floating profit of one hundred points, but suddenly you start to regret — will the market reverse? Or even worse, you are in a losing position, yet you keep betting on a rebound, resulting in even bigger losses.
This emotion-driven trading approach can destroy your account. Trailing Stop is designed to solve this problem.
What is a Trailing Stop?
A trailing stop is an intelligent stop-loss order that automatically moves with the market price, unlike a regular stop-loss.
In simple terms:
- You don’t need to manually adjust the stop-loss level
- When the market moves in your favor, the stop-loss line automatically moves up/down
- When the market reverses beyond your set margin ()