# Statistical Trailing Stop Statistical Trailing Stop is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. A trailing stop that sets its distance with statistics instead of guesswork: four levels derived from the log-normal distribution of grouped volatility, from reactive Level 0 to patient Level 3. A built-in dashboard records the outcome of every detected signal, so trend followers can judge which level actually fits the market in front of them. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 16, 2025. - Access: free. - Concepts: [Trailing Method Taxonomy](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/) (primary), [Volatility Stop](https://www.luxalgo.com/library/concept/volatility-stop/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn5y23008dvhsghhsig4hy - Page: https://www.luxalgo.com/library/indicator/statistical-trailing-stop/ The **Statistical Trailing Stop** protects open profits with levels drawn from the statistical distribution of volatility rather than a fixed offset. It sits in the volatility-anchored branch of the [trailing stop taxonomy](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/): a rolling 10-bar range is measured on every bar, recent readings form a volatility sample treated as log-normal, and four trailing levels are derived from that distribution. A built-in dashboard logs the statistics of every signal the tool detects, so level selection rests on evidence, not hunches. ## How to Trade the Statistical Trailing Stop? - **Level 0**: the most responsive of the four: it hugs price and hands back the least profit, at the cost of more frequent stop-outs. - **Level 3**: the most stable, tolerating deep pullbacks to stay with the larger trend. - **Levels 1–2**: intermediate trade-offs between reactivity and staying power. - **Dashboard check**: switch Base Level and compare the recorded long, short and total statistics on your symbol and timeframe before committing to one. The tool is deliberately plug-and-play: out of the box it measures a rolling 10-bar range on every bar and runs its statistics over the most recent 100 of those readings. Like any [volatility stop](https://www.luxalgo.com/library/concept/volatility-stop/), it is built for trending conditions. The base level you trail from controls how sensitive it is to reversals. ## Statistical Trailing Stop Settings - **Data Length**: shown in the settings, but the current version always measures volatility over a fixed 10-bar range, so changing it has no effect on the levels. - **Distribution Length**: how many data points form the distribution the levels are drawn from. - **Base Level**: which of the four statistical levels the stop trails; lower is tighter, higher rides out more turbulence. - **Show Statistics / Position / Size**: dashboard visibility, placement, and scale. ## Frequently Asked Questions ### How is this different from a structure-based trailing stop? Both trail behind trends, but they follow different anchors. The [Market Structure Trailing Stop](https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/) ratchets behind confirmed swing points, while this build derives its distance from the distribution of volatility itself, adapting to how much the market moves rather than where it pivoted. ### Which base level should I start with? No single level wins everywhere: Level 0 exits fastest, Level 3 holds through the deepest retracements. The practical route is to enable the dashboard, compare the logged statistics for each level on your market, and pick the one that matches your tolerance for giving back profit. ### How do I access the Statistical Trailing Stop? It is free on the LuxAlgo Library, no subscription needed. You can also load it into Quant, our coding agent, directly from this page and test each base level on your market. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md - [Fibonacci Trailing Stop](https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop.md - [Neighboring Trailing Stop](https://www.luxalgo.com/library/indicator/neighboring-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/neighboring-trailing-stop.md - [FVG Trailing Stop](https://www.luxalgo.com/library/indicator/fvg-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fvg-trailing-stop.md - [Market Structure Trailing Stop](https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/market-structure-trailing-stop.md - [Sigmoid Transition Trailing Stop](https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop.md - [Volume Delta Trailing Stop](https://www.luxalgo.com/library/indicator/volume-delta-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/volume-delta-trailing-stop.md - [LuxAlgo - Screener (S&O)](https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o.md --- Source: https://www.luxalgo.com/library/indicator/statistical-trailing-stop/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/