Trailing Stop is an investment strategy mainly used in trading markets such as stocks, foreign exchange, and futures. The purpose of this strategy is to obtain as much profit as possible while protecting investors' existing profits.

The basic principle of trailing stop loss is to lock in part of the profit by setting and continuously updating the stop loss point when the investor's position has made a certain profit. When the market price moves in the direction favorable to investors, the stop loss point will be adjusted upward as the price rises. If the market price reverses and hits the trailing stop, the system automatically closes the position, helping investors lock in realized profits.

Trailing stop loss can effectively reduce potential losses while giving investors the opportunity to obtain greater profits in trending markets. However, this strategy may also result in missing further profit opportunities by closing the position too early. Therefore, when using a trailing stop strategy, investors need to weigh it based on their risk tolerance and market conditions.

It should be noted that trailing stop loss is not a panacea. It cannot predict the top or bottom of the market, nor can it completely eliminate market risks. When using the trailing stop loss strategy, investors still need to pay attention to market dynamics and do a good job in risk management.