Question 1

Trailing Stop

Accepted Answer

A trailing stop follows the price as it moves favorably, then closes the position when price reverses by a set percentage.

Question 2

How It Works

Accepted Answer

1. **Position opens** at entry price 2. **Price moves in your favor** — the trailing stop follows behind 3. **Activation threshold** — trailing starts only after reaching minimum profit (activation %) 4. **Trail distance** — the stop trails at a fixed % behind the highest (for long) or lowest (for short) price 5. **Price reverses** — if price drops by the trail %, the position closes

Question 3

Configuration

Accepted Answer

| Parameter | Description | Example | |-----------|-------------|---------| | Activation % | Min profit before trailing starts | 2% | | Trail % | Distance the stop trails behind price | 1% |

Question 4

Example (Long Position)

Accepted Answer

- Entry: $100 - Activation: 2%, Trail: 1% - Price rises to $102 → trailing activates - Price rises to $105 → trailing stop at $103.95 ($105 × 0.99) - Price drops to $103.95 → position closes with +3.95% profit

Question 5

Example (Short Position)

Accepted Answer

- Entry: $100 - Activation: 2%, Trail: 1% - Price falls to $98 → trailing activates - Price falls to $95 → trailing stop at $95.95 ($95 × 1.01) - Price rises to $95.95 → position closes with +4.05% profit

Question 6

Breakeven

Accepted Answer

Breakeven moves the stop-loss to the entry price once a minimum profit is reached, ensuring you cannot lose on the trade.

Question 7

How It Works

Accepted Answer

1. **Position opens** at entry price 2. **Price moves in your favor** by the activation % 3. **Stop-loss moves to entry price** (break-even point) 4. If price reverses to entry → position closes at ~0% profit/loss 5. If price continues favorably → original TP/exit still applies

Question 8

Configuration

Accepted Answer

| Parameter | Description | Example | |-----------|-------------|---------| | Activation % | Min profit to move SL to breakeven | 1.5% |

Question 9

Example (Long)

Accepted Answer

- Entry: $100, SL: $97 (3%), Breakeven activation: 1.5% - Price rises to $101.50 → breakeven activates → SL moves from $97 to $100 - If price drops back to $100 → closes at breakeven (0% net, minus commission) - If price rises to $106 → TP triggers at +6%

Question 10

Mutual Exclusivity

Accepted Answer

> **Important:** Trailing Stop and Breakeven are **mutually exclusive**. You cannot enable both on the same strategy. When you enable one, the other is automatically disabled. This is because both modify the stop-loss behavior and would conflict with each other. Choose the one that fits your strategy: | Use Case | Choose | |----------|--------| | Lock in partial profits as price moves | **Trailing Stop** | | Only protect against loss, keep original TP | **Breakeven** | | Scalping with tight targ

Question 11

Combining with Other Exits

Accepted Answer

Both mechanisms work alongside other exit conditions: - Fixed SL serves as the initial stop before activation - TP levels are honored regardless of trailing/breakeven - Signal-based exits can still trigger

Question 12

FAQ

Accepted Answer

**Q: Can I use trailing stop with multi-level TP?** A: Yes. Partial TPs close at their levels; the trailing stop protects the remaining position. **Q: What if the activation % is never reached?** A: The trailing/breakeven never activates. The original SL and TP remain in effect. **Q: Does trailing stop guarantee the exact trail % profit?** A: In backtesting, the stop triggers at candle OHLC data. In live trading, slippage can cause the actual exit to differ slightly.

Question 13