> For the complete documentation index, see [llms.txt](https://tradewiz.gitbook.io/tradewiz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tradewiz.gitbook.io/tradewiz/auto-sell/trailing-stop.md).

# Trailing Stop

## 1. What's Trailing Stop?

A trailing stop order helps users lock in profits and manage risk by automatically adjusting the stop-loss level as the market price moves. 

When the price moves in a favorable direction, the stop-loss moves up accordingly to protect gains already made. If the price reverses, the order is triggered to exit the position, preventing further losses. 

## 2.  Trailing Stop in TradeWiz bot

* **Auto Sell**

<figure><img src="/files/pZ59hlHKFTKfrIUuDDOq" alt=""><figcaption></figcaption></figure>

## 3. **How a Trailing Stop Works (Example: 5% Trail)**

| **Price Movement** | **Current Price** | **Stop-Loss Level (5% below current price)** | **What Happens**                      |
| ------------------ | ----------------- | -------------------------------------------- | ------------------------------------- |
| Initial Price Set  | 100               | 95                                           | 🔒 Stop-loss set at 95                |
| Price Rises to 110 | 110               | 104.5                                        | 🔄 Stop-loss moves up to 104.5        |
| Price Rises to 120 | 120               | 114                                          | 🔄 Stop-loss moves up to 114          |
| Price Drops to 116 | 116               | 114                                          | ⏸ No change, still above stop-loss    |
| Price Drops to 114 | 114               | 114                                          | 🚨 Stop-loss hit — position is closed |