In this guide
What this covers
A fixed stop protects your entry. A trailing stop protects your gains. The mechanism is simple — the stop follows the high at a fixed distance and never retreats — and choosing the distance is the only real decision.
1. Name the distance and the ratchet
Trail my ETH stop 6% below the high and never move it down.Maren records a high watermark and re-derives the stop from it. New high, higher stop. Price falls back, stop stays.
2. Pick a distance from the asset's normal range
Too tight and ordinary noise closes a good position. Too loose and you hand back most of the move.
| Distance | Suits | Risk |
|---|---|---|
| 3–5% | Low-volatility majors | Stopped out by noise |
| 6–10% | Majors in a trend | Balanced |
| 12–20% | High-volatility alts | Gives back a lot at the turn |
Derive it from realised volatility rather than picking a round number. Ask Maren for the pair's average daily range and stay outside it.
3. Understand the trade you are making
A trailing stop guarantees you exit after the top, by exactly your trail distance. That is the cost of not having to time it. Accept that up front and you will stop resenting the fill.
Trailing stops shine in trends and bleed in choppy ranges, where they get picked off repeatedly. Match the tool to the regime.
4. Combine with a target when you have one
Trailing stop on the downside plus take-profit on the upside gives you a bounded position on both ends. Maren holds both instructions at once; whichever triggers first closes the position and cancels the other.
Tips
- Do not tighten the trail after a large run. It converts a trend-follower into a scalper at the worst moment.
- On multi-week holds, revisit the distance monthly — volatility regimes change.
- Voice is genuinely good for this: "move my ETH trail to 8%" is one sentence.
Troubleshooting
Stopped out then price recovered. The trail was inside the pair's noise band. Widen it.
Stop never moved. No new high was made. The high watermark is set at instruction time, not at entry.
The controls behind this workflow
- The stop only ever moves in your favour; it cannot ratchet down.
- Trail distance is measured from the high watermark, not from entry.
- Trigger fires on confirmed price, not on a single wick.
Guides describe how to operate Maren. They are not financial advice, and figures shown are illustrative. You approve every transaction before it is signed.