← Glossary

Trailing stop

A trailing stop follows price as a trade moves favorably, tightening the distance between the stop and the current price, but it should never move against the position — widening a stop after entry is the specific adherence failure this product's adherence score tracks. The chandelier rule is one way to implement a trailing stop; moving a stop to breakeven after a target fills is another.

This explains what trailing stop measures. It isn't investment advice — see the disclaimer.