KnowledgeBasics📚 Guidebook

Trailing stop explained

A Trailing Stop is a stop-loss that automatically moves with the price — but only in the direction of the profit. If the price rises on a Long long position, the stop moves up with it. If the price falls, the stop remains in place until it is triggered.

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The Explanation

All the important aspects explained simply.

Ruler

Trailing principle

Define a distance (e.g. 2% or 1.5x ATR). With each new high price movement the stop follows at the same distance — never in the loss direction.

Target

Purpose and limits

The purpose: to secure a portion of already accumulated profits without exiting too early. No safe protection: In case of price gaps or slippage, execution can be significantly worse than the stop.

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Static vs. dynamic

Simple Trailing Stops have a fixed distance. Multi-stage variants (such as FuturesBots 23-stage trailing) adjust the distance according to fixed levels of profit zone and volatility.

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23-Step Trailing

FuturesBot's implementation

Risk management

Risk limitation features

Risk Management Trading

Basics

⚠️ Risk Warning: FuturesBot is a technical automation tool — no investment advice, no investment recommendation, no asset management. You determine strategies, leverage and stake yourself. Crypto futures trading can lead to total loss; stop-loss and protection features do not reliably limit losses (price gaps, slippage, liquidation). No profit guarantee; past or simulated results are not an indication of future results. Check every setting thoroughly in paper mode first. Full Risk Disclosure

Trailing stop explained

The Explanation

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