Trailing stop
A trailing stop follows the price up and sells if it falls a set distance from its highest point. Definition, example and how it compares with a stop-loss.
Definition
A stop that moves up as the price rises, staying a set distance below the highest price since you bought, and sells if the price falls back by that distance.
A trailing stop is a stop-loss that follows a rising price. Instead of sitting at a fixed level, it stays a set distance, such as 5%, below the highest price reached since you bought. It never moves down.
Example
You buy ETH at $3,000 with a 5% trailing stop. The stop starts at $2,850. ETH rises to $3,400, and the stop rises with it to $3,230. ETH then falls back; at $3,230 the stop triggers and the position is sold, keeping most of the rise.
Why it matters
A fixed take-profit sells at one level and gives up any rise beyond it. A fixed stop-loss protects the downside but does nothing to protect a gain. A trailing stop does both: it lets a rise run, and it locks in part of it as the price climbs. The trade-off is the distance: too tight and normal swings trigger it early, too wide and it gives back much of the gain.
How TradeCorgi uses it
Describe a trailing stop in plain words, such as "sell if ETH falls 5% from its highest price since I bought", and it becomes the exit rule on your strategy card. Like every exit, it is checked at most once a minute, sells at market, and is backtested with fees so you can compare it with a fixed take-profit on the same period.