Individuals Institutional

Call toll-free 800.328.1267

Market Insights

Opportunity knocks for those with trading in their DNA.
Curiosity creates opportunity. Insights create strategy. Born traders create their destiny.

Trading with Trailing Stops Using the Matrix
TradeStation
June 3, 2025

Trading with Trailing Stops Using the Matrix

TradeStation’s Matrix offers a powerful way to manage trades with precision and flexibility. One standout feature is the ability to place and define trailing stop orders directly within the Matrix, giving traders dynamic risk management tools that adapt to market movement.

Placing and Defining Trailing Stops in the Matrix

The Matrix integrates a trade bar panel where you can easily access the trailing stop feature. To set up a trailing stop:

  • Open the Matrix and locate the trade bar panel
  • Select the trailing stop order type
  • Define your trailing stop rules by specifying either a fixed number of points or a percentage, which determines how far the stop will trail behind the current market price

How Trailing Stops Work

A trailing stop order automatically adjusts as the market moves in your favor. For example, if you’re long and the price rises, the trailing stop will move up by the specified increment, locking in gains as the price advances. If the market reverses, the stop remains at its last level, helping to secure profits or limit losses without manual intervention. This allows you to secure a better exit if the market moves in your favor.

Combining Trailing Stops with Other Exit Orders

The Matrix allows you to combine trailing stops with other exit orders such as profit targets or OCO (One-Cancels-the-Other) setups. This means you can create comprehensive exit strategies that automatically respond to market changes, reducing the need for constant monitoring

Potential Key Benefits and Risks of Using Trailing Stops in the Matrix

  • Dynamic risk management as trailing stops adapt to favorable price movements, helping to maximize gains while protecting against reversals
  • Customizable rules let you set trailing stops in points or percentages to match your strategy and market conditions
  • Integrated workflow allows you to manage trailing stops alongside other order types within the Matrix for seamless execution and monitoring
  • A risk of premature exit if the trailing stop is set too close to the current price, normal volatility can trigger the stop and exit a still-profitable trade
  • Slippage may occur, especially during fast-moving or illiquid markets, resulting in execution at a worse price than expected
  • There is no guarantee of execution at the stop price, particularly during periods of high volatility or low liquidity

 

By leveraging trailing stops in the Matrix, TradeStation users can automate their exit strategies, respond to changing market conditions in real time, and maintain greater control over their trades. Get to know the TradeStation platform in greater detail by exploring the our QuickStart series.

 

ID9268810116 D0625 P7210171497

Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the Margin Disclosure Statement at www.TradeStation.com/DisclosureMargin.

Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See www.TradeStation.com/DisclosureOptions. Visit www.TradeStation.com/Pricing for full details on the costs and fees associated with options.

 

Tags:

About the author