Drawdown vs Trailing Stop

Quick comparison to help you distinguish these two crypto terms.

Drawdown
intermediate
risk

The percentage decline in account value from its highest recorded point to its subsequent lowest point before a new peak is reached, used as the primary measure of strategy risk.

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Trailing Stop
intermediate
strategy

A dynamic stop-loss that automatically moves in the direction of a profitable trade as price advances, locking in accumulated gains while allowing the position to continue benefiting from ongoing price movement.

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