Trailing Stop (Coming Soon)

A trailing stop is a risk management tool that allows you to secure profits while keeping a position open as long as it moves favorably. Unlike a traditional stop-loss, which is set at a specific level, a trailing stop adjusts automatically based on price movements.

How Does a Trailing Stop Work?

1. Initial Position:

   • When an investor buys or sells an asset, they set a trailing stop with a certain distance (in percentage or absolute value) from the current price.

2. Automatic Adjustment:

   • If the price moves in favor of the investor (upward for a long position or downward for a short position), the trailing stop level adjusts automatically to maintain the defined distance.
   • Example:
     • Buy a token at $100.
     • Set trailing stop at 10% (i.e., $90).
     • If price rises to $110, the stop automatically moves to $99.
     • If price then drops to $105, the stop remains at $99.

3. Stop Execution:

   • If the price falls (or rises for a short position) to the stop level, the position is automatically closed, securing gains or limiting losses.

Benefits of a Trailing Stop

1. Secure Profits:

   • The trailing stop protects realized gains without requiring constant market monitoring. Investors can let their position evolve while ensuring their profits are secured.

2. Limit Losses:

   • By automatically adjusting the stop level, it acts as a safety net, limiting potential losses if the market moves in an unfavorable direction.

3. Reduce Stress:

   • Investors don’t need to constantly monitor market fluctuations, as the trailing stop adjusts automatically.

4. Flexibility:

   • Suitable for all types of markets (stocks, cryptocurrencies, forex, etc.) and all strategies (short-term or long-term).

5. Maximize Opportunities:

   • Unlike a traditional stop-loss, a trailing stop allows staying positioned on a favorable trend without setting a premature exit.

Why Integrate it into Sharkblock?

1. Automation with AFK Mode:

   • Users can configure take profit and stop loss levels when buying a token, letting Sharkblock automatically adjust the thresholds.

2. Protection and Risk Management:

   • The trailing stop helps investors effectively manage their risks without needing constant surveillance.

3. Strategy Optimization:

   • Traders can maximize their profits on upward trends while minimizing risks related to rapid market reversals.

4. Multi-Blockchain:

   • Compatible with all assets traded on blockchains supported by Sharkblock (Ethereum L2, Solana, etc.).

The trailing stop is an essential tool for any investor looking to maximize profits while effectively managing risks. Integrated into Sharkblock, it offers a powerful solution for users seeking performance and peace of mind in an often unpredictable market environment.