Trailing stop orders are powerful tools in a trader’s arsenal, especially in volatile markets like cryptocurrency. They allow traders to lock in profits while minimizing downside risk—automatically. This guide introduces Altrady’s implementation of trailing stop orders, explaining how they work, their key components, and practical examples to help you understand how to use them effectively.
Whether you're aiming for better entry points or maximizing exit profits, trailing stops offer a dynamic alternative to traditional limit or stop-loss orders. Let’s dive into the mechanics and benefits of this advanced trading feature.
Why Use Trailing Stop Orders?
Have you ever watched a price surge on a chart and wished you could ride that momentum—without constantly monitoring the screen?
Or perhaps you’ve set a take profit level, only to see the price go even higher after your order executed? Conversely, have you missed an ideal buying opportunity because the dip didn’t last long enough?
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A trailing stop order solves these challenges by dynamically adjusting as the market moves. Instead of setting a fixed exit or entry point, the trailing stop follows the price in the desired direction—locking in gains if the trend reverses.
Once the price retraces by a percentage you define (the stop percentage), the system triggers a limit order. This means:
- For buy orders, it trails below the price and activates when the market starts rising after a dip.
- For sell orders, it trails above the price and executes when the market drops after an uptrend.
This flexibility helps traders optimize both entries and exits—automatically.
How Altrady Implements Trailing Stop Orders
Altrady enhances standard trailing stop functionality with customizable limit-based trailing stops, giving users greater control over execution prices. Here’s what’s currently supported:
- Trailing Stop Buy (Limit): Ideal for entering a position during a potential reversal after a downtrend.
- Trailing Stop Sell (Limit): Perfect for securing profits on existing holdings as prices rise.
- (Coming soon): Integration with All-in-One trades as an automated exit strategy.
These are not simple market triggers—they are limit trailing stops, meaning once activated, a limit order is placed at a predefined price, increasing the chance of favorable fills without slippage.
Key Components of a Trailing Stop Order
To configure a trailing stop on Altrady, you’ll need to set three critical parameters. Understanding each is essential for effective use.
1. Trigger Price
This is the price level at which the trailing mechanism activates. It can be:
- Set manually (e.g., $100)
- Or set to the current market price for immediate activation
Until the market reaches this price, no trailing occurs.
2. Stop Percentage & Stop Price
The Stop Percentage defines how much retracement will trigger the order. The actual trigger point is calculated as the Stop Price.
For example:
- In a sell order, if the highest price reached is $110 and your stop % is 5%, the Stop Price becomes $104.50 ($110 × 0.95).
- If the price then falls below $104.50, the limit sell order is placed.
The stop only moves upward for sell orders (locking in higher lows) and downward for buy orders (capturing deeper dips).
3. Limit Percentage & Limit Price
Once triggered, the system places a limit order—not a market order. The Limit Percentage determines how aggressive or conservative that order is relative to the Stop Price.
For instance:
- With a Limit Percentage of 2%, your buy order may be placed slightly above the Stop Price to increase fill probability.
- A tighter limit reduces slippage but risks non-execution.
This dual-percentage system gives you fine-tuned control over both activation and execution.
Example 1: Trailing Stop Buy Order
Let’s walk through a real scenario using concrete numbers.
Settings:
- Trigger Price: $100
- Stop Percentage: 9%
- Limit Percentage: 10%
Initially, the current price is $110. The trailing mechanism remains inactive until the price drops to $100—the trigger.
Once triggered:
- Altrady begins tracking new lows
- The Stop Price trails 9% below the lowest observed price
- The Limit Price trails 10% below
As the price continues falling and finds new lows, the Stop and Limit Prices update accordingly—always moving downward.
Now, suppose the market reverses:
- Current price climbs to $90
- At this point, it exceeds the updated Stop Price of $88.29
- A Limit Buy is placed at $89.10 (based on Limit %)
If better ask prices exist on the order book at that moment, your order may fill immediately at those improved rates.
This strategy allows you to catch rebounds without predicting exact turning points.
Example 2: Trailing Stop Sell Order
Now let’s see how it works when exiting a profitable position.
Settings:
- Trigger Price: $100
- Stop Percentage: 7%
- Limit Percentage: 8%
The current price starts at $90 but rises to $100—activating the trailing logic.
From here:
- Altrady tracks new highs
- The Stop Price adjusts upward, staying 7% below the peak
- The Limit Price follows at 8% below
Suppose the price peaks at $105, then begins to fall:
- The Stop Price is now $97.65 ($105 × 0.93)
- When the current price drops below this level—say to $97.50—the sell triggers
- A Limit Sell is placed at $96.60 ($105 × 0.92)
Even if the price keeps dropping, your order executes at or above $96.60—protecting most of your gains.
👉 Learn how smart order routing can improve your trade execution speed and success rate.
Frequently Asked Questions (FAQ)
Q: What happens if the market gaps past my Stop Price?
A: Since Altrady uses limit orders, your trade will only execute at your defined Limit Price or better. If there's a large gap and insufficient liquidity, the order may not fill immediately—but you avoid unfavorable slippage.
Q: Can I modify a trailing stop order after placing it?
A: Yes, as long as it hasn’t been triggered, you can edit or cancel the order through Altrady’s interface.
Q: Is there a risk of frequent triggering in choppy markets?
A: Yes—high volatility can cause premature triggers. To reduce this risk, choose wider stop percentages during turbulent periods or avoid using trailing stops during news events.
Q: How does this differ from a regular stop-loss?
A: A traditional stop-loss is static—it doesn't adapt to price movement. A trailing stop dynamically adjusts, allowing you to protect profits as prices move favorably.
Q: Are trailing stops suitable for all trading strategies?
A: They work best in trending markets. In sideways or range-bound conditions, they may underperform compared to fixed take-profit levels.
Final Thoughts
Trailing stop orders bridge the gap between manual oversight and full automation—giving traders a smarter way to manage entries and exits across volatile digital asset markets.
With Altrady’s limit-based approach, you gain precision over both when and how your orders execute. Whether you're scaling into positions or protecting profits on long-term holds, mastering trailing stops can significantly enhance your trading performance.
👉 Start applying intelligent order strategies today and take control of your trading outcomes.
For step-by-step guidance on setting up these orders—including recommended settings based on volatility and strategy—be sure to explore advanced configuration techniques in follow-up materials.
Last updated: June 11, 2024