SaviCoin Trailing Take Profit and Stop Loss Feature Explanation

To help users manage risk and profits more flexibly, SaviCoin has launched the trailing take profit and stop loss feature.

Trailing take profit and stop loss is an intelligent close-out mechanism that dynamically tracks market price changes. It automatically expands profit space when the market moves favorably and executes close-out automatically when the market reverses, helping users achieve “automatic profit locking” and “dynamic risk control.”

Please fully understand the triggering logic and risk mechanism of trailing take profit and stop loss before use.

1. What is Trailing Take Profit and Stop Loss?

Trailing take profit and stop loss means:

After the market price reaches the user-set activation condition, the system will dynamically track the market price according to the preset callback ratio.

When the price moves in a favorable direction: the system will automatically update the take profit and stop loss price.

When the market price reverses and reaches the user-set callback amplitude: the system will automatically submit a market close-out order.

Compared with traditional fixed take profit and stop loss, trailing take profit and stop loss features dynamic adjustment, automatic profit locking, reduced manual monitoring, and trend-following profit expansion.

2. Core Logic of Trailing Take Profit and Stop Loss

Trailing take profit and stop loss applies only to close-out orders for existing positions.

It does not apply to opening new positions directly.

The core logic is as follows:

1. Activation Mechanism

The system only officially starts trailing take profit and stop loss tracking when the market price reaches the user-set activation price.

2. Dynamic Tracking Mechanism

When the market continues to move in a favorable direction:

The system will automatically update the latest trailing take profit and stop loss price.

Specifically: price rises → long position take profit price moves up accordingly

Price falls → short position take profit price moves down accordingly

3. Callback Trigger Mechanism

When the market price reverses from the highest price (long position) or lowest price (short position):

and the callback amplitude reaches the user-set ratio: the system will automatically submit a market close-out order.

This is used to: lock in profits / control drawdown / reduce risk of expanding losses

3. Key Parameter Explanation
 

4. Trailing Take Profit and Stop Loss Execution Mechanism

1. In the case of a long position (bullish)

Trailing take profit and stop loss for long positions is suitable for users holding long positions who want to:

continuously expand profit space during a rising market.

Execution logic

The user needs to set: activation price > current market price

When the market price reaches the activation price: the system officially starts tracking.

If the market continues to rise: the trailing take profit and stop loss price will move up accordingly.

The system records the latest highest price.

And automatically calculates the latest trailing take profit and stop loss price based on the callback rate.

Long position callback trigger

When the market price starts to fall from the highest point and the callback amplitude reaches the preset ratio: the system will immediately submit a market sell order to close the position.

Example

Current BTC price: 30,000 USDT

User sets: activation price: 31,000 USDT, callback rate: 5%

When BTC rises to: 35,000 USDT, the system automatically calculates:

35,000 × (1 - 5%) = 33,250 USDT

At this point: 33,250 USDT is the latest trailing take profit and stop loss price.

If the market then falls to: 33,250 USDT, the system will automatically close out with a market sell order.

2. In the case of a short position (bearish)

Trailing take profit and stop loss for short positions is suitable for users holding short positions who want to continuously expand profit space during a falling market.

Execution logic

The user needs to set: activation price < current market price

When the market price falls to the activation price: the system officially starts tracking.

If the market continues to fall: the trailing take profit and stop loss price will move down accordingly. The system records the latest lowest price and automatically calculates the latest trailing take profit and stop loss price based on the callback rate.

Short position rebound trigger

When the market price starts to rebound from the lowest point and the rebound amplitude reaches the preset ratio, the system will immediately submit a market buy order to close the position.

Example

Current BTC price: 35,000 USDT

User holds a short position. User sets: activation price: 32,000 USDT, callback rate: 5%

When BTC falls to: 31,000 USDT, the system automatically calculates:

31,000 × (1 + 5%) = 32,550 USDT

At this point: 32,550 USDT is the latest trailing take profit and stop loss price.

If the market then rebounds to: 32,550 USDT, the system will automatically close out with a market buy order.

5. Conditions for Trailing Take Profit and Stop Loss to Take Effect

Trailing take profit and stop loss must meet the following two conditions simultaneously:

Condition 1:

The market price reaches the activation price.

Condition 2:

The market price reverses and reaches the set callback rate. Only when both conditions are met will the system automatically submit a market close-out order.

6. Differences from Regular Take Profit and Stop Loss
 

Risk Reminder

If the callback rate is too low: normal market fluctuations may prematurely trigger close-out.

This may cause profits to be taken too early. If the callback rate is too high, profits may not be locked in time. In case of sharp market reversals,

losses may increase.

7. Advantages of Use

Automatic Profit Locking

When prices keep rising or falling, the system automatically updates the take profit price to help users secure existing profits.

Reduces Monitoring Pressure

No need for long manual monitoring. The system automatically executes the trading logic.

Suitable for:

Users who cannot monitor the market for long periods.

Improves Trend Trading Efficiency

In trending markets, helps users capture larger profits as much as possible.

More Flexible Risk Control

Can be used together with regular take profit and stop loss to improve overall trading strategy flexibility.

8. Risk Reminder

Digital asset contract trading carries high risk and high volatility. Although trailing take profit and stop loss can help users:

dynamically lock profits/control risks, it cannot guarantee 100% execution at the expected price. In extreme market conditions, risks such as slippage, price gaps, and execution delays may occur.

Please set the activation price and callback rate reasonably based on your own risk tolerance, position size, and market conditions. Trade rationally and be aware of risks.