Glossary

Common trading and platform terminology used throughout TradeStaq.

A

ADX (Average Directional Index)

A technical indicator measuring trend strength on a scale of 0-100. Values above 25 indicate a strong trend; below 20 indicates a weak or ranging market.

API Key

Credentials provided by an exchange that allow TradeStaq to access your account for trading. Consists of an API key and secret.

ATR (Average True Range)

A volatility indicator measuring the average range between high and low prices over a period. Used for dynamic stop loss placement.

B

Backtest

Testing a trading strategy on historical data to evaluate potential performance before live trading.

Bollinger Bands

A volatility indicator consisting of a middle band (SMA) and upper/lower bands set 2 standard deviations away. Used to identify overbought/oversold conditions.

Bot

An automated trading system that executes trades based on predefined rules or signals. TradeStaq offers Signal Bots and Trading Bots.

C

Candle / Candlestick

A visual representation of price movement showing open, high, low, and close prices for a time period.

Copy Trading

Following another trader's signals and automatically replicating their trades on your account.

Crossover

When one indicator line crosses above or below another, often used as a trading signal (e.g., EMA crossover).

D

Drawdown

The peak-to-trough decline in account value, usually expressed as a percentage. Used to measure risk.

Dynamic Pair

Feature allowing Signal Bots to trade different pairs based on the webhook signal, rather than being locked to one pair.

E

EMA (Exponential Moving Average)

A moving average that gives more weight to recent prices, making it more responsive to new data than SMA.

Entry

The point at which a trade position is opened (buy or sell).

Exchange

A cryptocurrency trading platform where trades are executed. TradeStaq supports 15 exchanges including Binance, Coinbase, Bybit, OKX, Kraken, and more.

Exit

The point at which a trade position is closed.

F

Follower

A user who copies another trader's (Master's) signals via Copy Trading.

Futures Trading

Trading contracts that derive value from an underlying asset, allowing leverage and the ability to profit from price decreases (shorting).

H

Histogram

The bar chart portion of the MACD indicator showing the difference between the MACD line and signal line.

L

Leverage

Borrowed capital to increase position size. 10x leverage means $100 controls $1000 worth of assets. Amplifies both gains and losses.

Limit Order

An order to buy or sell at a specific price or better, rather than immediately at market price.

Liquidation

Forced closure of a leveraged position when losses approach the margin amount. Results in loss of position margin.

Long

A position that profits when price increases. "Going long" means buying with expectation of price rise.

M

MACD (Moving Average Convergence Divergence)

A momentum indicator showing the relationship between two EMAs. Consists of MACD line, signal line, and histogram.

Margin

The collateral required to open and maintain a leveraged position.

Market Order

An order to buy or sell immediately at the current market price.

Master Trader

A user who shares their trading signals for others to copy. Can monetize their signals.

MFI (Money Flow Index)

A volume-weighted RSI that measures buying and selling pressure.

O

OHLCV

Open, High, Low, Close, Volume - the five data points in a candlestick.

P

Paper Trading

Simulated trading with virtual funds. No real money is at risk, used for testing and learning.

Pivot Points

Technical analysis levels calculated from previous period's high, low, and close. Used to identify potential support/resistance.

PnL (Profit and Loss)

The financial gain or loss from trading, expressed in currency or percentage.

Position

An open trade - either long (buy) or short (sell) - that has not yet been closed.

Position Sizing

Determining how much capital to allocate to a single trade, usually as a percentage of total capital.

R

ROE (Return on Equity)

Profit expressed as a percentage of the margin used, relevant for leveraged trading.

ROI (Return on Investment)

Profit expressed as a percentage of the total investment.

RSI (Relative Strength Index)

A momentum indicator measuring speed and magnitude of price changes on a 0-100 scale. Below 30 is oversold; above 70 is overbought.

S

Short

A position that profits when price decreases. "Going short" means selling with expectation of price fall.

Signal Bot

A TradeStaq bot that executes trades based on external webhook signals (e.g., from TradingView).

Slippage

The difference between expected price and actual execution price, usually during fast-moving markets.

SMA (Simple Moving Average)

Average price over a specified number of periods, giving equal weight to all prices.

Sortino Ratio

A risk-adjusted performance metric similar to Sharpe ratio but only penalizes downside volatility.

Spin

One execution cycle of a Trading Bot strategy. The strategy runs, evaluates conditions, and potentially generates signals.

Spot Trading

Buying and selling actual cryptocurrency assets, as opposed to derivatives like futures.

Stop Loss

An order to close a position at a specific price to limit losses.

Stochastic Oscillator

A momentum indicator comparing closing price to price range over a period. Used to identify overbought/oversold.

T

Take Profit

An order to close a position at a specific price to lock in gains.

Timeframe

The duration of each candlestick (e.g., 1m, 5m, 1h, 4h, 1d).

TradeStaq

TradeStaq's internal trading bot engine that executes custom strategies.

Trading Bot

A TradeStaq bot that runs internal strategies automatically, without external signals.

Trailing Stop

A stop loss that automatically adjusts as price moves in your favor, locking in profits.

V

Volatility

The degree of price variation over time. High volatility means large price swings.

Volume

The amount of an asset traded during a time period.

W

Webhook

An HTTP endpoint that receives signals from external sources like TradingView. Used by Signal Bots.

Win Rate

The percentage of trades that result in profit. A 55% win rate means 55 out of 100 trades are profitable.

Need More Help?