Trailing Stop Loss Strategies
1. Absolute Trailing Stop
Locks in profits by moving the stop-loss order a fixed amount away from the current market price as the asset price rises.
Advantages:
Simple and easy to implement.
Protects profits effectively.
Disadvantages:
Can get stopped out prematurely during volatile market conditions.
May not adjust sufficiently to large market swings.
2. Percentage Trailing Stop
Trailing stop moves as a fixed percentage of the asset's current market price.
Advantages:
Adap....
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