> For the complete documentation index, see [llms.txt](https://docs.odin.tools/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.odin.tools/thor-trading-bot/thor-telegram-bot/trailing-stop-loss.md).
# Trailing Stop-Loss
### What is a Trailing Stop-Loss?
A **Trailing Stop-Loss** is an advanced version of a standard stop-loss.
Instead of remaining fixed, the stop price **automatically moves upward as the token price increases**. This allows you to **lock in profits while limiting downside risk**, making it ideal for capturing strong momentum without giving back gains during pullbacks.
***
### Example
You set:
* **Take Profit:** +200%
* **Stop Loss / Drawdown:** -40%
If the token pumps **+190%** and then starts to drop, the outcome depends on whether the trailing stop is enabled.
| Scenario | Result |
| -------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Without Trailing Stop-Loss | The position stays open until the price drops to **-40%**, which can turn a profitable trade into a loss. |
| With Trailing Stop-Loss | The stop price **moves upward with the price**, securing profits. If the price peaks at **+190%**, the stop adjusts to about **+74%**, locking in gains. |
***
### Formula
The trailing stop is calculated using the following formula:
\text{Stop Price} = \text{Highest Price} \times (1 - \text{Drawdown})
Example calculation:
| Highest Price Reached | Drawdown | Stop Price |
| --------------------- | -------- | ---------- |
| +190% | 40% | +74% |
This means the trade will **automatically close in profit** if the price drops to that level.
***
### How to Enable Trailing Stop-Loss
{% hint style="info" %}
Trailing Stop-Loss Setup Tutorial: [YouTube](https://youtube.com/shorts/Z-GTnAjdH1I)
{% endhint %}
| Step | Action |
| ---- | --------------------------------------------------------------------------------------------------------------------------------- |
| 1 | Open Settings
|
| 2 | Click on Trading Settings
|
| 3 | Enable Auto Sell
|
| 4 | Activate Trailing Stop-Loss
|