Trailing Stop Order
A Trailing Stop Order on Aster is a smart type of stop order that adjusts itself automatically as the market moves in your favor. Instead of using a fixed stop-loss, you can let the system track the price and move the stop level along with the trend. This helps you protect profits without manually updating your stop every time the price changes.
Rather than choosing a specific stop price, you set a callback rate. The callback rate is a percentage that determines how far the market must reverse before the stop triggers. As long as the market continues to move in your favor, the trailing stop keeps updating and follows the price. Once the price reverses by the callback rate, the trailing stop activates and sends a market order to close your position.
How it works
Callback rate: This is the key setting. It is the percentage distance the price must reverse from the highest or lowest point reached after your trailing stop is placed.
For example, if you use a 2% callback rate, the trailing stop price will always remain 2% behind the most favorable price reached. • For long positions, it stays below the highest price. • For short positions, it stays above the lowest price.
Once the reversal equals the callback rate, the trailing stop triggers a market order.
How it behaves for long and short positions
Long positions: • The stop price moves upward when BTC rises. • The stop price never moves downward. • If BTC pulls back by the callback rate, your trailing stop triggers a market sell order to close the position.
Short positions: • The stop price moves downward when BTC falls. • The stop price never moves upward. • If BTC rebounds by the callback rate, your trailing stop triggers a market buy order to close the short.
Example 1: Long position on BTC
• Entry price: 95,000 • Callback rate: 2%
You place a trailing stop after entering long.
BTC rises from 95,000 to 100,000.
The system tracks the new peak.
The trailing stop price is updated to 98,000 because this is 2%below the recent high.
If BTC continues rising, the trailing stop keeps moving upward.
If BTC drops from 100,000 to 98,000, the price has reversed by the full 2%, so the trailing stop triggers a market sell order.
Your long position closes, locking in profit automatically.
This helps you stay in the uptrend while still protecting gains if momentum shifts.
Example 2: Short position on BTC
• Entry price: 105,000 • Callback rate: 2%
You place a trailing stop after entering short.
BTC falls from 105,000 to 100,000.
The system records 100,000 as the lowest price since the short was opened.
The trailing stop adjusts to 102,000, which is 2 percent above the recent low.
If BTC continues falling, the trailing stop follows downward.
If BTC rebounds from 100,000 to 102,000, the reversal hits 2 percent, so the trailing stop triggers a market buy.
Your short position is closed, securing profit before the price climbs further.
A trailing stop is particularly useful when: • You want to automatically protect profits as the market moves in your favor. • You want your trade to continue running without constantly adjusting your stop price. • You prefer a more dynamic exit strategy instead of a fixed stop-loss level. • You want to maximize gains in strong trends while still having clear protection if the trend reverses.
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