Which of the following is NOT one of the protective stops for momentum trading?

In momentum trading, protective stops are essential tools that help manage risk and lock in profits. The correct choice highlights an option that does not fit well with the conventional strategies typically employed for this type of trading.

Using a trailing stop that retreats after a price decline is not considered a protective stop for momentum trading. Momentum trading strategies rely on the continuation of price trends and intend to maximize returns by staying in trades for as long as the momentum persists. A trailing stop should be designed to lock in profits as prices move in favor of the trader, rather than retreating after a decline, which could lead to exiting a position prematurely in a volatile market.

In contrast, setting stops above or below the most extreme high or low momentum value, establishing horizontal levels of attainment, and using fixed points or percentage trailing stops are all valid techniques that complement the momentum trading approach. These methods are aimed at managing risk effectively while allowing the trader to capitalize on potential continued price moves in a favorable direction. They help to create a structured and disciplined approach to exiting trades, thus enhancing the overall strategy in momentum trading.