TRAILING STOP LOSS mode
Same as buy the dip... but to sell !
A trailing stop-loss is an intelligent version of a normal stop-loss, which is a limit sell that fills if the price dips below a certain point, preventing losses from happening.
In a trailing stop-loss, the sell price follows (or “trails”) behind the current price of your chosen token, meaning that if the price moons and then unexpectedly drops, then the stop-loss would trigger at a higher price, meaning more profits for you.
For this example, we’ll look at three traders, A, B and C. All three bought $HYPECOIN at $1.00 However,
- Trader A reckons nothing can ever go wrong and just leaves his trade open.
- Trader B is a bit smarter and knows that DeFi trading can be quite volatile, so he sets a standard stop-loss to trigger if the price drops to 75% of his entry price.
- Trader C also sets his stop-loss at 75% of his entry price, however he’s even smarter and knows that LimitSwap Trailing Stop-Losses is the best tool available for giving peace of mind when making these kinds of trades. He sets a Trailing Stop-Loss to trail 75% of the ATH price of the token
Later that night, $HYPECOIN pumps 200%, but then quickly dumps to 50% below our three trader’s entry price. All three traders are asleep and miss the price action.
- Trader A wakes up and panic sells, losing 50% of his investment.
- Trader B wakes up and has only lost 25%, thanks to his 'normal' stoploss. However….
- Trader C wakes up to a tasty 175% profit.
Why? As the price increased, LimitSwap's Trailing Stop-Loss followed it, constantly setting the exit price to 25% below the current price
The trailing stop loss will start to work when price goes above your SELLPRICEINBASE, to avoid selling too quickly after a price movement.
It works in 3 steps :
1/ Select trailing_stop mode with one of this value
2/ Set your minimal sell price (you can enter a number or a percentage) :
"SELLPRICEINBASE": "0.0002" or "SELLPRICEINBASE": "300%"
3/ Set your parameters :
4/ Set your STOPLOSS (you can enter a number or a percentage) : If the price never goes above your SELLPRICEINBASE , it will sell when STOPLOSS is triggered
"STOPLOSSPRICEINBASE": "0.000001" or "STOPLOSSPRICEINBASE": "50%"
In the example below, bot will sell if price goes down ATH-15% (--> if ATH was 2$, bot will sell at 1.70$)