Glossary
The terms our guides and strategies use, each in one or two sentences.
Terms, in plain words
Trading has a lot of jargon, and automation adds more. This glossary defines the terms used across TradeCorgi in one plain sentence each, then gives an example, explains why the term matters, and says how TradeCorgi uses it.
Some terms are renamed in the product to keep things clear. TradeCorgi names the maximum drawdown of a strategy its worst drop, and shows it at the same size as the result in every backtest. Where a term has a close cousin, such as a stop-loss and a stop-limit order, each definition links to the other and to a guide that compares them.
Each definition links to related terms and to the guides that use it, so you can follow a thread from a word you do not know to a strategy you can test on paper.
Definitions here are written for people who trade, not for exams. Where a term hides a common mistake, such as expecting a stop-loss to sell at exactly your price, the definition says so, and the example shows what happens in a fast market.
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- Daily loss limitA cap on how much a strategy may lose in one day; once the day's losses reach it, trading pauses until the next day.
- Dollar-cost averaging (DCA)Buying a fixed amount of a coin on a fixed schedule, such as $40 every Monday, whatever the price, so you buy more when it is cheap and less when it is expensive.
- DrawdownThe fall from an account's highest value to its lowest point before it recovers, as a percentage. TradeCorgi names the largest one the worst drop.
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- SlippageThe difference between the price you expected and the price your order actually filled at, usually worse in fast or thin markets.
- Spot tradingBuying and selling coins outright, paid in full with money you have, so you own what you buy and can never lose more than you put in.
- Stop-limit orderAn order that becomes a limit order once a stop price is reached: it never sells below your limit, but in a fast fall it may not fill at all.
- Stop-lossA rule that sells a position when its price falls a set amount below the buy price, such as 6%, so a single loss stays small.
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- Take-profitA rule or order that sells a position once its price rises a set amount above the buy price, such as 4%, so the move is locked in rather than left to fade.
- Trailing stopA stop that moves up as the price rises, staying a set distance below the highest price since you bought, and sells if the price falls back by that distance.