Fuselit Tools

Trailing Stop Calculator

Enter your entry price, the peak the stock has reached, and your trail %. We'll show where the stop sits, how much profit is locked in, and how far the current price is above it.

Trailing stop level
Locked-in profit
Locked-in gain %

Setting trailing stops by hand on every position? Fuselit runs trailing stops and rebuy logic automatically on your Alpaca account.

Try Fuselit free →

How trailing stops work

A trailing stop is a stop-loss order that automatically follows the price up, never down. You set it as a fixed percentage (or fixed dollar distance) below the highest price reached since entry. Each time the stock makes a new high, the stop ratchets up by the same percentage. If the price reverses, the stop stays where it is — and eventually triggers if the price falls back to it.

The mechanic is simple: trail_stop = peak × (1 − trail%/100). It's the cleanest way to let winners run while protecting accumulated profit. The trade-off is that a tight trail exits you on normal pullbacks, while a wide trail gives back more of the gain before triggering. Most traders match the trail width to the stock's typical daily range — often via ATR.

Frequently asked questions

How do you calculate a trailing stop loss?

Multiply the highest price the stock has reached since you entered (the peak) by (1 − trail_percent/100). The result is your current trailing stop level. As the peak rises, the stop ratchets up with it; if price falls, the stop stays put.

What is a good trailing stop percentage?

It depends on the stock's volatility. For large-cap, low-volatility names, 5–10% is common. For volatile growth stocks, 15–25% prevents normal noise from stopping you out. A common rule is to set the trail at 2–3× the stock's average true range (ATR) over the prior 14 days.

What's the difference between a trailing stop and an ATR trailing stop?

A percentage trailing stop trails by a fixed percentage of the peak price. An ATR trailing stop trails by a multiple of the stock's average true range — it adapts to changing volatility. ATR stops are tighter in calm markets and wider in volatile ones, which often reduces premature exits.

When should a trailing stop trigger?

The trailing stop triggers when the market price touches or crosses below the stop level (for a long position). Some brokers fill at the stop price as a market order, others use a stop-limit. Always check how your broker handles fills, especially in fast-moving markets.