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Trailing stops: server side or client side

A trailing stop sounds simple. The stop follows price at a set distance. Where the logic runs makes a big difference.

On MetaTrader platforms, the built-in trailing stop is client-side. It works only while the terminal is running and connected. If the computer sleeps, the VPS restarts, or the connection drops, the trailing stops, and the last stop level stays where it was.

A server-side trailing stop runs at the broker and keeps working regardless of the trader's connection. Few retail platforms offer one.

The failure mode shows up on a good trade. Price runs in favour, the stop should have trailed, the terminal disconnected, and the reversal hits an old stop far below.

Awareness helps. Anyone relying on trailing stops should check which kind the platform provides, and monitor the connection status. A hard stop at a sensible level protects against the disconnect case.

Has a client-side trailing stop ever failed to follow price because of a disconnect?

A trailing stop follows price at a set distance. It sounds simple. The details depend on who runs it. Server-side trailing is maintained by the broker's system. Client-side trailing is run by the platform or an EA on the trader's computer.

With client-side trailing, the stop moves only while the platform is running and connected. If the terminal crashes or the connection drops, the stop stays wherever it was last set. The trader believes the position is protected at a tight level when it's actually far back.

Server-side trailing continues regardless. The tradeoff is that not all brokers support it, and those that do may update at intervals.

Client-side trailing also generates modification requests. Each tick moves the stop and sends an order to the server. This can hit rate limits or add latency.

A test on a demo account makes the difference clear: start a trailing stop, disconnect the platform, and see what happens to the stop.

Knowing which type is active, and where the protective level really sits, matters more than the trailing distance itself.

Which type of trailing stop is the platform actually using, and has it ever failed mid-trade?