Trailing stops - ATR

3 ATR units away from the best point the position has seen since we opened it. So for long positions, the stop is always 3 ATR units down from the highest high since we bought and for shorts it is 3 units above the lowest low.

Clenow, Andreas F. (2012-11-26). Following the Trend: Diversified Managed Futures Trading (Wiley Trading) (Kindle Locations 1795-1797). Wiley. Kindle Edition. 
