What is a Trailing Stop?
A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price. A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trade if the price changes direction by a specified percentage or dollar amount.
Set up a Trailing Stop
1. Log into your Backoffice as a Customer
2. Click on “Bitcoin Trading Software” button on the bottom right.
3. Log into your trading platform, then click on the Hybrid bot and then on Hybrid USDT. Select the Exchange, the API Key and the currency, select the amount like any hybrid order, scroll down, and there you will find the Trailing Stop option.
Then the next step would be.
4. Click on the "not active" button to start configuring the trailing stop, when you click on the button, the following screen will appear.
5. Here you can see 3 boxes in which the first, is predetermined on 3% (this cannot be modified since this would be the minimum profit that the Bot would require to close the trade) this means that between 0 and 3% profit, the bot will not sell the coin. Now, in the second box, must be placed the upper margin (according to our own criteria) the percentage of rise that we would like for our trade. And in the third box (stop loss) we must place the percentage of decline that would be willing to consider after the bot has fulfilled the requirement of the second box
6. In this example you can see that in the second box it is estimated that the currency could rise up to 15% as configured, now, suppose that the currency actually rises to any value between 3 and 15% but then, Its price begins to fall, according to the value that was placed in the third box, its price must decrease by 3% with respect to the highest price the coin reached, so the robot automatically makes the sale, obtaining the highest amount of profit possible Now, there is a second way to configure the Trailing stop. Starting from the previous example: Let's say that the coin rises the 15% that we estimated it to rise, but this time its price does not fall, but continues to rise, keep in mind that, if the price continues to rise, the bot will automatically sell according to the parameter that was placed in the example above, it means that although the price of the currency continues to rise, the bot will have sold at a maximum of 15% profit, even a little less, if the stop loss configured was met In order to increase the profit levels, the following must be done: If the market for that currency is on the rise and we know that it could rise even more than 15%, what we must do is create another level of Trailing Stop, this is done by pressing the + button and three new boxes will be displayed equal to the first , but this time the lower profit limit will be the 15% cap that we set at the previous level. In this way, we will place in the same way in the second box the percentage to which we would like the price of the coin to reach and in the third box the percentage of fall that we would be willing to accept after having fulfilled the parameter of the first and second box. (have in mind that these parameters would only begin to operate as long as the first level of trailing stop parameters are exceed)Example:
7. In this example you can see that 30% of the maximum sale value was placed with a maximum drop of 5% to make the sale Now, the parameters that we configure in level one of the Trailing Stop could be fulfilled (increase a value between 3% and 15% and then fall by 3%), and after being fulfilled, the currency could continue to rise in price, in the same way the bot would make the sale in the first level obtaining a profit of no more than 15%. To prevent the robot from selling the currency at a value between 3% and 15% in the first level of the trailing stop, in the third box (stop loss) a value must be placed that is not going to be fulfilled and in this way , the bot will only sell when the parameters of the second level are met.Example:
8. You can perform all the levels of trailing stop that you consider necessary.