Trailing stop
A stop loss that follows price by a set distance as the trade moves in your favour, locking in more profit while staying in the move.
In practice
A long trade on USD/JPY is 60 pips in profit. A 30-pip trailing stop now sits 30 pips below price; if price rises another 20 pips, the stop follows it up by 20.
Trailing too tightly. Normal intraday noise can stop the trade out just before the move continues.
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