PillarX Insights — How Algorithmic Trade Events Work

PillarX Insights — How Algorithmic Trade Events Work

Written by

PillarX

December 31, 2025

Welcome to PillarX Insights.

PillarX Insights is an algorithmic insights intelligence system.
It continuously scans the market, processes real-time data, and automatically generates trade events based on predefined strategies, risk rules, and execution logic.

Every trade you see is produced by the algorithm, not manually entered, and every trade follows the same structured framework.

Let’s walk through a trade event and explain exactly how it works.

Algorithmic Trade Events

When the algorithm detects a valid opportunity, it creates a trade event.

That trade event includes:

  • Asset
  • Direction
  • Entry price
  • Stop loss
  • Multiple take profit targets
  • Position sizing logic
  • Automated risk management

Everything is defined at the moment the trade is created.

Long vs Short

Each trade event is clearly labeled as Long or Short.

A Long trade means the algorithm expects the price of the asset to increase.
A Short trade means the algorithm expects the price to decrease.

In this example, the trade is Short, meaning the algorithm is positioned to profit as the price moves lower.

Entry Price

The entry price is the price level where the algorithm opens the trade.

This price becomes the reference point for:

  • Profit calculations
  • Risk management
  • Take profit targets
  • Stop loss placement

All performance metrics are measured relative to the entry price.

Take Profit Targets — Progressive Exits

Each trade uses three take profit targets.

Each target closes 33.33% of the total position.

That means:

  • Take Profit 1 closes the first third
  • Take Profit 2 closes the second third
  • Take Profit 3 closes the final third

This approach allows the algorithm to:

  • Lock in profits early
  • Reduce risk as the trade progresses
  • Still participate in extended market moves

It avoids the all-or-nothing problem of single take-profit trading.

Dynamic Stop Loss Logic

Every trade includes a predefined stop loss.

The stop loss represents the maximum loss the algorithm is willing to accept.

If the price reaches this level, the trade is closed automatically to protect capital.

As profits are realized, the stop loss becomes dynamic.

When any take profit target is hit, the stop loss automatically moves to 5% below the take profit price.

This mechanism:

  • Locks in gains
  • Reduces downside exposure
  • Turns winning trades into protected positions

Risk continuously decreases as the trade succeeds.

Price Action Graph

The graph represents the actual price action of the asset over time.

It provides instant visual context:

  • Where the price is relative to the stop loss in percentage
  • How far the price is from the next take profit target in percentage
  • How the trade has evolved since entry

This allows users to understand trade health at a glance, without opening a full chart.

How Trades Close

A trade event can close in one of three ways:

  1. Stop loss is hit
    The algorithm exits the trade to cap losses.
  2. Opposite Trade Event is generated
    The algorithm detects a market reversal and exits early.
  3. All take profit targets are hit
    The position is fully closed after all profits are realized.

Every exit is rule-based and automatic.

Understanding PnL

Floating PnL
Floating PnL represents the current total performance of the system.
It includes:

  • Realised PnL from closed portions of trades
  • Unrealised PnL from open positions

This shows where performance stands right now.

Open PnL
Open PnL shows unrealised profit or loss only.
It reflects how much open trades would gain or lose if closed at current prices.

Closed PnL
Closed PnL represents fully realised profit and loss from all completed trades.
This is locked-in performance.

Why This Matters

PillarX Insights is designed to remove emotion, guesswork, and inconsistency.

You don’t just see signals.
You see:

  • How trades are structured
  • How risk is managed
  • How profits are progressively secured

Every decision is transparent, systematic, and algorithm-driven.

PillarX Insights turns advanced algorithmic trading into something clear, auditable, and easy to follow.

Structured entries.
Dynamic risk control.
Progressive profit taking.

This is how professional-grade trading intelligence should work.

This is PillarX Insights.


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Disclaimer: Cryptocurrency investments involve market risk. The information in our publications and on the PillarX website does not constitute financial advice. Please conduct your own research before making any financial decisions.

Please note that Algorithmic Insights are for informational purposes only and do not constitute financial advice.