To help users better manage position risks and lock in profits during market fluctuations, ASTX provides the Trailing Take Profit / Stop Loss feature. Below is a detailed explanation and user guide.
1. What is Trailing Take Profit / Stop Loss?
Trailing Take Profit / Stop Loss (Trailing Stop) is an intelligent liquidation strategy that automatically adjusts the take profit or stop loss price based on a preset percentage as the market price moves.
• When the market moves in a favorable direction, the stop price moves accordingly, locking in floating profits continuously.
• When the market moves against you, the stop price remains fixed. Once the price reaches the trailing stop level, the system automatically executes a market order to close the position.
• Only applicable to existing positions.
2. Execution Principle
Long Position Close
1. Activation Condition: Activation price is above the latest market price
2. Once the market reaches the activation price, the trailing stop price rises according to the trailing rate
3. If the market falls from the highest point by the trailing rate, a market order is triggered to close the position
Short Position Close
1. Activation Condition: Activation price is below the latest market price
2. Once the market reaches the activation price, the trailing stop price falls according to the trailing rate
3. If the market rises from the lowest point by the trailing rate, a market order is triggered to close the position
Note: The trailing stop executes only when both the activation price is reached and the trailing rate condition is met.
3. How to Set Trailing Stop
1. Trigger Conditions
• Long: Market price ≥ activation price & retracement ≥ trailing rate
• Short: Market price ≤ activation price & rebound ≥ trailing rate
2. Trailing Rate
• Determines how closely the stop price tracks the market price
• Setting range: 0.1% – 99%
• Can be manually entered or selected using quick options (e.g., 5%, 10%)
3. Activation Price
• Users can set manually or select the latest market price
• Long: Activation price must be above the current market price
• Short: Activation price must be below the current market price
• Trailing stop triggers only when the market price reaches or surpasses the activation price
4. Order Trigger
• Once conditions are met, the system closes the position at market price automatically
4. Setting Considerations
• Avoid setting trailing rate or activation price too small or too large
• Too small a trailing rate or activation price too close may trigger prematurely due to minor market fluctuations
• Too large a trailing rate or activation price too far may delay execution, increasing potential loss
• Adjust dynamically based on market volatility and personal risk tolerance
• Can be combined with normal take profit / stop loss to maximize profits
5. Usage Examples
1. Long Position Profit
• Entry Price: 30,000 USDT
• Latest Market Price: 31,000 USDT
• Activation Price: 32,000 USDT
• Trailing Rate: 5%
Market rises to 35,000 USDT → trailing stop adjusts to 33,250 USDT (35,000 × (1-5%))
If market falls to 33,250 USDT or below → system closes at market price, locking in profit
2. Short Position Profit
• Entry Price: 30,000 USDT
• Latest Market Price: 29,000 USDT
• Activation Price: 28,000 USDT
• Trailing Rate: 5%
Market falls to 27,000 USDT → trailing stop adjusts to 28,350 USDT (27,000 × (1+5%))
If market rises to 28,350 USDT or above → system closes at market price, locking in profit
3. Losing Position
• Long entry 30,000 USDT, latest price 25,000 USDT
• Activation Price 28,000 USDT, Trailing Rate 5%
• Price rises to 28,500 USDT → trailing stop adjusts to 27,075 USDT
• Price falls to 27,075 USDT → position closes, partially reducing loss or securing partial profit
6. Terminology
• Retracement: Short-term price movement in the opposite direction after a rise or fall
• Trailing Rate: Difference ratio between the highest/lowest price and the current price
• Long Close: Decline from the highest point for long positions
• Short Close: Rise from the lowest point for short positions
7. Advantages of Using Trailing Stop
• Locks in floating profits without constant monitoring
• More responsive to market fluctuations compared to normal take profit / stop loss
• Maximizes profit potential in unpredictable markets