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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.

In Simple Terms: Imagine you buy at $0.10 and the price goes to $0.30 (3x). Instead of exiting immediately, trailing stop lets it keep going. If price hits $0.50, your stop moves to $0.45 (10% below peak). If price drops to $0.45, you exit with 4.5x instead of 3x. You catch the trend!

How It Works

Execution Logic

1

Activation Phase

Trailing stop remains inactive until position reaches activation threshold (e.g., +20% profit). This prevents premature exits on normal volatility.

2

Tracking Highest Price

Once activated, system continuously tracks and records the highest price the position has reached.

3

Stop Price Calculation

Stop price = highest price × (1 - distance %). Example: highest = $0.50, distance = 10% → stop = $0.50 × 0.90 = $0.45

4

Stop Moves Up Only

As price rises, stop price rises. Stop never moves down - it only trails upward, locking in gains.

5

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

Configuration Location: Adjust these settings in Dashboard → System → Config under the Positions section or edit 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