Articles on: Trading Essentials

Smart Orders: Trailing Stop Loss: Follow Price

Trailing stop loss orders are an essential tool for traders and investors to manage risk while maximizing potential profits. In this article, we will explore the functionality of the TSL: Follow Price feature in Altrady crypto trading software. This feature allows users to set trailing stop loss orders that dynamically adjust with price movements, enabling them to secure profits and limit losses effectively.

Use Case

The TSL: Follow Price feature in Altrady enables traders and investors to efficiently manage their positions. By setting a trailing stop loss order with the Follow Price option, users can automatically adjust their stop loss level as the market price moves in their favor.

When initiating a long position, the TSL will follow the price upwards. If the price starts to decline and reaches the TSL stop price, a market order is executed to close the entire position. Conversely, in a short position, the TSL follows the price downwards. When the price reverses and begins to rise, reaching the TSL stop price triggers a market order to close the position.

How It Works: Settings and Execution

To utilize the TSL: Follow Price feature, you need to configure the following settings in Altrady:

Trigger Price

Set the price at which the trailing will start. Typically, the trigger price is set at or above the initial entry price. As soon as this price is reached, the TSL starts trailing, securing profits as long as the price moves favorably.


Determine the distance from the trigger price at which the stop price for the TSL begins and trails. The distance can be specified as a percentage or adjusted by dragging the SL Distance price handle on the chart. It is always positive and offset below the trigger price for a long position (or above for a short position).

Once the trigger price is reached, the stop loss moves from its initial price to the specified distance below the trigger price. The trigger price and stop price continue to move up (for a long position), with the trigger price trailing the current price and the stop price trailing behind.

If the current price starts to decline, the trigger price remains fixed and does not reverse. When the price reverses and reaches the stop price, the stop loss order (either market or limit, depending on settings) is placed to close the position.

A smart order with Buy entry and TSL: Follow Price. (For visual clarity, no TP is included here, but usually one or more TPs would also be part of the order: green box)

IMage: Execution: An annotated screenshot or diagram to demonstrate the movement of the Trigger Price and Stop Price as the market price fluctuates, illustrating how the TSL: Follow Price dynamically trails the price.


Let's consider some examples to understand how the TSL: Follow Price feature operates:

Scenario: You purchase a coin at 5 EUR each and set a trailing stop loss order at 5% below the current market price. As the coin price increases to 6 EUR per share, the trailing stop loss order adjusts to 5.7 EUR (5% below 6 EUR). If the coin price suddenly drops to 5.5 EUR, the trailing stop loss order would trigger, selling the coin and limiting potential losses.

Tips and Best Practices

Here are some tips and best practices for effectively using the TSL: Follow Price feature:

The initial Stop Loss value must be between 0% and 99%.
Remember that trailing stop loss orders are valuable tools but not foolproof. Consider your risk tolerance and investment goals before using any trading strategy.
Keep in mind that if the price rapidly declines without reaching the TSL trigger price, the TSL will not be activated, and the initial stop price may be reached, resulting in a stop out at that price. To ensure that the TSL: FP is triggered, the trigger price should be set at or very close to the entry price.
Note that all remaining entries will be cancelled once the TSL is triggered. The Stop Loss would always be reached before entry prices.


In case you encounter any issues with the TSL: Follow Price feature, refer to the following troubleshooting tips:

If the TSL is never triggered, ensure that its price is not placed after the liquidation price.
If the sell fill price is lower than expected or lower than the entry, you may need to review your settings and ensure they are aligned with your trading strategy.
If the TSL order disappears after the Take Profit (TP) is triggered, it is recommended to check the order status and review the order history to understand the sequence of events and confirm the execution.

Comparison with Other TSL Options: TSL: Follow Take Profit and TSL: Average Entry

When comparing the TSL: Follow Price feature with other trailing stop loss options like TSL: FTP and TSL: AE, there are notable differences in their behaviour:

TSL: Follow Price smoothly moves the stop loss as the price moves in a profitable direction, while TSL: FTP and TSL: AE adjust the stop loss in "jumps" when certain conditions are met.

The Follow Price option allows the stop loss to trail the price closely, providing tighter risk management, whereas the other options may have more significant gaps between stop loss adjustments.

For all three types of TSL, once it is triggered, remaining entries are cancelled as these can never be filled (the SL would be executed first).

To learn more about the comparisons and specific functionalities of different trailing stop loss options, refer to
Smart Orders: Trailing Stop Loss comparison.

Comparison with Altrady's Standalone/Entry Trailing Stop Loss Order

While the general principle of a trailing stop loss order remains the same, there are key differences between the TSL: Follow Price feature and Altrady's standalone/entry trailing stop loss order:

TSL: Follow Price can only be used as an exit for a smart order and not as a standalone order.
TSL: Follow Price is initially combined with a regular stop loss order. If the price immediately and continuously declines without triggering the TSL: Follow Price, the standard stop loss will be activated.
For a TSL: Follow Price order, a Market or Limit exit can be selected. For the Standalone order, the exit is always a limit order.
Once the TSL: Follow Price is triggered, the regular stop loss order is canceled, and the trailing stop loss takes over.
The Trigger Price is usually set at or above the entry price to minimize losses as the price starts moving upwards. The Trigger Price is entered as a percentage relative to the entry price.
The TSL Stop Price is also entered as a percentage, offset below the Trigger Price for long positions. It adjusts dynamically based on the highest entry price or lowest sell entry price.
If there are additional entries (DCAs) filled before the TSL: Follow Price is triggered, the Trigger Price and Stop Price will be adjusted relative to the new average entry price. However, if DCAs are filled after the TSL: Follow Price is triggered, the Trigger Price and Stop Price will remain unchanged.

image/table: A comparison table or side-by-side screenshots highlighting the key differences between the two types of trailing stop loss orders

By understanding the differences between the TSL: Follow Price feature and Altrady's standalone/entry trailing stop loss order, traders can select the most appropriate option based on their trading strategies and objectives.

More information on Altrady's standalone TSL order:
Altrady's Trailing Stop Orders Part 1: An Introduction
Altrady's Trailing Stop Orders Part 2: Placing and Executing Orders

Trailing Take Profit (TTP) orders and Trailing Stop Loss orders can both be added to the same smart order, but won't be active simultaneously. Once the TTP is triggered, the TSL is cancelled.

We hope this article has provided you with a comprehensive understanding of the Trailing Stop Loss (TSL): Follow Price feature in Altrady crypto trading software. Utilize this powerful tool to effectively manage your positions, secure profits, and limit potential losses in your trading journey.

Updated on: 11/09/2023

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