Trailing Take Profit Tutorial
What is it?
Two different configurations are within this feature, trailing stop loss and take profit.
The first one, trailing stop-loss order, or simply trailing stop, refers to the technique of raising the stop order of your coin assets as the market price goes up thus securing a profit margin while staying in the game holding the coin asset to potentially make higher profits in a bull market. Therefore the stop-loss price is not set at a single, absolute dollar amount, but instead a certain percentage below the market price.
In a nutshell, a trailing stop-loss order should be regarded as the safety net of your profits. It allows the trader to stay in the game holding a coin asset while protecting the profit margin if the price drops to keep attempting to move.
The second, Take Profit, refers to the technique of selling a fraction of your balance whenever a target is hit.
When to use it?
How does Anny operates the Trailing Take Profit?
* Do the Trailing Take Profit and the Take Profit work together?
The Trailing Take Profit technique works in conjunction with the Take Profit but this takes precedence over the other.
Example 1: If you have Trailing Take Profit on and the Take Profit set for target 3, Trailing Take Profit will be effective on target 1 and 2, when hitting target 3 the Take Profit will execute 100% of your balance.
Example 2: If you have Trailing Take Profit on and Take Profit set at 5% profit, Trailing Take Profit will be effective only until the desired profit is reached. When the target profit reaches the Take Profit will execute 100% of your balance.
How can I set it up?
What are my options?
- Target hit or Profit Percent
Starting target: Select from which target or profit amount the trailing stop-loss order should start to move.
- Target 1, 2 ou 3 or percent amount
Interval: Select the interval of profit percent that the trailing stop-loss order should be shifted. For example: start at 1%, move the stop order every time a profit of 2% is found..
- Target 1, 2 ou 3 or percent amount
Distance: Use a percent amount to determine the distance in which the stop order should be in relation to the trigger point. For example: start at 1%, move the stop order every time a profit of 2% is found, position the stop order 1% below the current price..
- 1 target below
- 1.5 targets below
- 2 targets below
- Percent amount
Margin: Adding a margin between the stop price and the sell price will increase the chances that your order will execute. Your selected margin will be used to calculate the limit price of the stop order.
- For exemple: • Signal Stop Price: 0.00001234 / Margin: 0.5%
- Stop price = 0.00001234
- Limit price = 0.00001128 (0.5% de 0.00001234)
This is the option to sell a fraction of your balance at every target met.
Basis of calculation
The basis of calculation considers 2 options:
- Balance left over: the remaining balance will be used in order to calculate the take profit amount. For example, the sum of all entries on a given signal resulted in 100 coin balance. The take profit was configured to sell 50% at each target. At target 1 the take profit amount will 50 coins (50% over 100, the remaining balance) and on target 2 the take profit will be of 25 coins (50% over 50, the remaining balance)
- Total balance: the accumulated balance over all entries on the signal will be used. For example, the sum of all entries on a given signal resulted in 100 coin balance. The take profit was configured to sell 50% at each target. At target 1 the take profit amount will be 50 coins (50% over 100, the total balance) and on target 2 the take profit will be 50 coins (50% over 100, the total balance)
- Market or Limit
Fraction for each target
Select the fraction amount for each target.
Here are the pros and cons of Trailing Take Profit:
* PRO: you secure some profit by selling part of your balance and stay in the game climbing up the target ladder with the rest of your balance. This strategy is particularly effective when the price starts climbing from buy range to target 1, there's usually a high probability that the price will drop to buy range before attempting to climb to target 2.
* CON: you will compromise your profitability, especially if the signal reaches its full potential.