Trailing Stops

Trailing stops are stop-loss orders designed to move along with the price. The idea is to constantly update your stop-loss level to lock in profits as the price changes. For example, if you are long and the price falls by a specified percentage or dollar amount, trailing stops can help you exit the trade automatically.

💁🏻‍♂️How to use trailing stops

Set the trailing stop percentage or value. For instance, with a 5% trailing stop, if $BTC moves from $80,000 to $90,000, your stop-loss adjusts to $87,500 (5% below $90,000). If it moves further to $100,000, your stop-loss adjusts to $97,000 (5% below $100,000).🤷🏻‍♂️

Advantages

👉Allows participation in extended uptrends.

👉Minimizes losses during sudden market reversals.