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Trailing Stop

A stop-loss that follows the position up: it sits a fixed percentage below the highest price reached and ratchets upward only, never down. Trailing stops let winners run while guaranteeing an exit a set distance from the peak. The width is the whole game — tight trails exit on noise, wide trails give back more at the end.
See it in action: 20-Day Momentum + Trailing Stop →

Backtested on 59 ETFs over 5.7 years with real engine results and a buy-and-hold comparison on every page.

Related terms

Stop-Loss OrderA resting order that triggers a sale when price falls to a set level, …Take-Profit OrderA resting sell order at a level above the entry price that locks in a …

Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-10-02, $10,000 starting capital, no margin, no fees or slippage in the headline run; buy-and-hold puts 98% of the account in at the first open, as the templates do) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.