1. What is Trailing TP/SL?
Trailing TP/SL allows users to preset orders within a percentage-based price range during market fluctuations. When the market moves in a favorable direction and then reverses, it helps traders limit losses and protect profits.
As the price moves favorably, the trailing TP/SL adjusts upward or downward by the set percentage. As long as the market continues favorably, the position remains open to capture further profit. ⚠️ Note: Trailing TP/SL does not move in the opposite direction.
2. How is Trailing TP/SL Executed?
Applicable only for closing existing positions.
Long positions: Activation price must be above market. When triggered, the stop price moves upward with market increases. If the price falls back ≥ callback rate, position is closed at market.
Short positions: Activation price must be below market. When triggered, the stop price moves downward with market decreases. If the price rebounds ≥ callback rate, position is closed at market.
Execution requires both activation price trigger and callback rate reached.
3. How to Set Trailing TP/SL?
Trigger Conditions
Long: Market hits activation price + retraces ≥ callback rate.
Short: Market hits activation price + rebounds ≥ callback rate.
Callback Rate
Range: 0.1% ~ 99%.
Can be manually set or quick-select (e.g., 5%, 10%).
Activation Price
Can be manually set or use “latest market price”.
For longs, must be higher than market price; for shorts, must be lower.
Trigger
Order activates once market price reaches activation level.
Execution
Long: After rising, if price falls ≥ callback rate → closes at market.
Short: After falling, if price rebounds ≥ callback rate → closes at market.
4. Key Reminders
Too small callback → premature trigger from normal fluctuations.
Too large callback → may only trigger in extreme moves, risking loss.
Activation too close/far reduces efficiency.
Adjust based on market conditions + personal risk tolerance.
5. Why Use Trailing TP/SL?
Purpose: Capture profits without predicting exact highs/lows.
Limitation: Users can’t monitor market 24/7.
Advantage: Avoids frequent manual adjustments; system tracks automatically.
6. Example (Simplified)
Long 1 BTC, entry price 30,000.
Activation 32,000, callback 5%.
Market rises to 35,000 then drops to 33,250 (=35,000*(1-5%)).
System executes sell at 33,250.
👉 Result: Closed below peak, but above entry, securing profit.