Trailing Stop Calculator
Protect your profits with a trailing stop. Calculate the optimal stop price based on percentage or dollar distance from the highest price reached.
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How It Works
Percentage Mode
Sets the stop at a fixed percentage below the highest price reached. As the price climbs, the stop ratchets up proportionally. For example, a 5% trailing stop on a stock that hit $60 places the stop at $57.00.
Dollar Amount Mode
Sets the stop at a fixed dollar amount below the highest price reached. Useful when you want a predictable dollar risk per share regardless of the stock's price level.
The trailing stop automatically adjusts upward as the highest price increases, but never moves downward. If the price drops and hits the stop level, your position is closed — locking in gains from the peak.
When to Use a Trailing Stop
Trending Markets
Trailing stops excel in strong uptrends, letting winners run while protecting accumulated gains from reversals.
Swing Trading
Set and forget — a trailing stop removes emotion from exit decisions during multi-day or multi-week trades.
Momentum Plays
Riding a breakout? A trailing stop lets you capture the bulk of the move without timing the exact top.
Crypto Volatility
Crypto markets move fast. A trailing stop protects you during sharp reversals common in digital assets.
Managing Multiple Positions
When holding several stocks, trailing stops automate exits so you don't miss a reversal while focusing on research.
Protecting Profits
Already in profit? A trailing stop below the current price ensures you walk away with gains, not losses.
Risk Considerations
- Whipsaw risk: Tight trailing stops can trigger during normal volatility, exiting you from a position that would have recovered. Consider the stock's average daily range when setting your distance.
- Gap risk: In fast-moving markets or overnight gaps, price can blow through your stop level and execute at a worse price than expected. This is common with earnings announcements and macro events.
- Not a guarantee: A trailing stop is an order instruction, not insurance. Execution depends on market conditions, liquidity, and broker handling.
- Transaction costs: Frequent stops in choppy markets can erode gains through commissions and slippage. Factor in your total cost per trade.
- This is educational only: This calculator is for planning purposes. It does not place orders or manage your portfolio. Always consult a licensed financial advisor for trading decisions.