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Trailing Stop Loss
Lock in profits automatically while allowing your position to capture extended trends. The most sophisticated exit strategy for maximizing gains.
What is Trailing Stop?
Strategy Overview
Trailing stop is a dynamic exit strategy that moves your stop loss price up as the token price increases, locking in profits while still allowing the position to grow. Unlike a fixed ROI target, trailing stop adapts to price movement.
How It Works
Execution Logic
Activation Phase
Trailing stop remains inactive until position reaches activation threshold (e.g., +20% profit). This prevents premature exits on normal volatility.
Tracking Highest Price
Once activated, system continuously tracks and records the highest price the position has reached.
Stop Price Calculation
Stop price = highest price × (1 - distance %). Example: highest = $0.50, distance = 10% → stop = $0.50 × 0.90 = $0.45
Stop Moves Up Only
As price rises, stop price rises. Stop never moves down - it only trails upward, locking in gains.
Exit Trigger
When current price drops below stop price → position exits immediately with high priority
Detailed Example:
• Entry: $0.10 | Activation: 20% | Distance: 10%
• Price rises to $0.12 (20% profit) → Trailing stop ACTIVATES
• Price continues to $0.20 → Stop = $0.18 (10% below $0.20)
• Price rises to $0.50 → Stop = $0.45 (10% below $0.50)
• Price peaks at $0.60 → Stop = $0.54 (10% below $0.60)
• Price drops to $0.54 → EXIT triggered at $0.54
Result: 5.4x profit vs. 2x if using fixed ROI target!
Configuration
Configuration Settings
Enabled
Master switch for trailing stop
positions.trailing_stop_enabled
Default: true
Activation %
Profit % to activate tracking
positions.trailing_stop_activation_pct
Default: 20.0
Distance %
Distance below peak for stop
positions.trailing_stop_distance_pct
Default: 10.0
data/config.toml directly.Setting Recommendations
Conservative
Activation: 30%
Higher threshold for safety
Distance: 15%
Wider stop for volatility
Best for:
High volatility meme coins
Balanced (Default)
Activation: 20%
Good balance
Distance: 10%
Standard trailing distance
Best for:
Most tokens, general trading
Aggressive
Activation: 15%
Early activation
Distance: 5%
Tight stop for quick exits
Best for:
Trending tokens, runners
Pros & Cons
Advantages
- •Maximum Profit: Captures extended trends automatically
- •Locks Profits: Protects gains as price rises
- •Adapts to Market: Works in any trend strength
- •Removes FOMO: No fear of missing out on more gains
- •Ideal for Runners: Perfect for 5x, 10x+ tokens
Limitations
- •Requires Profit: Must reach activation threshold first
- •Volatility Risk: Can exit on brief dips
- •Complex Setup: Two parameters to optimize
- •False Signals: Tight stops = more whipsaw exits
- •No Protection Below Entry: Doesn't prevent losses
Best Practices
Do's
- •Widen distance (15%) for volatile meme coins
- •Tighten distance (5%) for trending tokens
- •Use with DCA for better average entry
- •Monitor activation rate (should activate 60%+ of trades)
- •Combine with time override for bag holder protection
Don'ts
- •Don't use distance <5% (too many false exits)
- •Don't set activation too high (30%+ rarely activates)
- •Don't manually exit when trailing is active
- •Don't use same settings for all tokens
- •Don't rely on trailing stop alone for downside protection
When to Use Trailing Stop
Ideal For:
- • Strong trending markets
- • Runner tokens with momentum
- • Tokens with potential for 5x-10x+
- • When maximizing profits is priority
- • Swing trading longer timeframes
- • Positions you want to "let run"
Not Ideal For:
- • Choppy, sideways markets
- • Extremely volatile meme coins
- • Quick scalping (use fixed ROI)
- • Low liquidity tokens (wide spreads)
- • When you want guaranteed X% profit
- • Beginner traders still learning