Stop Loss — protecting against big losses
A stop loss is a pre-set exit price — if the stock falls to this level, you sell immediately to prevent further loss. TradeDesk sets stop loss at 6% below your entry price.
Stop Loss Price = Buy Price × 0.94
Example: Buy at $100.00 → Stop Loss at $94.00
This means the maximum loss per trade is 6% of your position. On a $1,000 position, that's a $60 maximum loss before you exit.
Trailing Stop Loss — locking in profits
A trailing stop is activated once you're profitable. It moves up as the price rises, locking in gains while letting the trade run. TradeDesk rule: activate at +8%, then trail 4% below the highest price reached.
Activate at: Buy Price × 1.08 (+8% gain)
Trail stop: Highest Price × 0.96 (4% below peak)
Example: Buy $100 → Activate at $108 → If price peaks at $120, trail stop = $115.20