Imagine longing BTC-PERP for $30,000. You decide that you don’t want to lose more than 10% of your investment, so you set a trailing stop order at 10%. As BTC's price moves up, the stop price follows at 10% below the market price. If BTC reaches $35,000, the stop price adjusts to $31,500. However, if BTC's price then falls to $31,500, the stop loss is triggered and the BTC-PERP position is closed. In this case, not only did you manage to preserve your initial capital, but you also made a profit.