Automated Crypto Trading
If you are a regular crypto trader, you might have tried many trading bots. Well, if you haven’t tried grid trading bots yet, then it is recommended to use them to earn good profits. Many experienced crypto traders are using grid bots as they are quite remarkable. Now, you might be thinking what is grid trading and how can one use grid trading bots? Let’s explore these answers one by one: What is grid trading? Grid trading is a type of quantitative crypto trading strategy. In this type of trading, orders are placed above and below a set price, creating a grid of orders at increasing and decreasing prices. This trading strategy seeks to capitalize on normal price volatility in a crypto asset by placing buy or sell orders at certain regular intervals above or below the preset price. It’s an automated trading strategy where an investor or trader creates a price grid and the basic idea behind this strategy is that the trader will repeatedly buy at some predefined price, and then wait for the price to rise above that level, and then sell that position. This kind of trading works great in the ranging sideways market, and using a grid trading bot allows you to execute the strategy even if you are sleeping. Grid trading gives profits to traders with ups and downs of the price fluctuations in the market. It allows traders to make profits with smaller price fluctuations. And, a grid trading bot helps traders to perform grid trading to make good profits. The more frequent and the bigger price fluctuations are there, the more profitable the trading strategy will be. What is a grid trading bot? Grid trading bot is a kind of bot that assists its traders in carrying out the grid trading strategy. It enables them to place a series of buy and sell orders within a defined price range. The main principle of grid bots is the same as that of Dollar Cost Averaging (DCA) bots. In grid trading, the bot first places a buy order, and if the price moves in the opposite direction, it places some additional orders. The main difference is that in this bot, each buy order will place a take-profit order separately unlike DCA bots where a take-profit order is placed for all the executed buy orders. When you choose to trade using grid bots, every buy order will place a sell order. If you have placed 10 buy orders, a total of 10 sell orders will be placed here. One can also consider crypto trading signals to set the grids on the bot. This bot has a continuous closed loop of work and once the bot closes all sell orders, it will start a new cycle by placing a new buy order. While performing grid trading, the traders must make sure that the proper risk management measures are in place. Determining a lower price range on the grid is the key to guaranteeing profitability in grid trading. So, it is important that you must be extremely selective on the market trends suitable for your grid trading strategy to avoid being on the risky market. Determining an appropriate leverage ratio is a must for grid trading. Make sure to set suitable stop-loss and take-profit orders to avoid losses due to the fluctuating market conditions. Also sure that the grid trading parameters set by the traders are compatible with the current market conditions. These parameters can be adjusted in real-time as per the present market settings. Grid trading is ideal for everyone who wishes to trade cryptocurrencies in a systematic way. And, one should take advantage of trading bots when it comes to automating their trading strategy. Best grid trading bots Some popular exchanges supporting grid trading: Binance grid trading bot Being one of the most popular cryptocurrency exchange platforms, Binance offers grid trading bot available on their futures market. A lot of Binance users may not be aware of it, and if you are the one looking for the best grid bot to earn profits on the grid strategy, try Binance trading bot. This bot is different from other trading bots as it won’t hold positions, rather it shorts or longs over each grid where the price reaches to its buy or sell threshold. TrailingCrypto grid trading bot This is another popular crypto trading terminal in the market that supports grid trading. The platform allows its traders to connect with the popular and major crypto exchanges to perform grid trading. This trading bot allows you to set grid quantity, lower and upper price limit, price, and more. Additionally, some additional parameters are also available including take profit, training orders, stop loss, and more. The platform provides crypto trading signals to the traders to place the trade smartly. 3Commas grid trading bot This is one of the best grid trading bots which works with all the major crypto exchanges. This bot actually offers AI-based grid trading where you will allow the bot to decide the upper and lower limit. Manual trading option is also available where the trader can set the parameters by their own. Conclusion Grid trading bots allow you to trade by automating your trading strategies while minimizing the manual work. After comparing the above bots, TrailingCrypto works the best. Grid trading will create orders at progressing increasing and decreasing price to profit from the price fluctuations in the market.
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Determining the right risk management plan is the most important part of a successful trading strategy. Before entering any trade, the trader must have a rigid idea of where you should plan to exit any trade. There are different kinds of strategies and order types which one can chose from while trading cryptocurrencies. If you have ever done crypto trading, you may be puzzled when it comes to placing an order. But, now the question is, what are these order types, and how can you use them in your trading strategy? The best cryptocurrency exchanges usually offer different types of basic orders to place their trades. But if you want to earn more profits, then you need to add more advanced tools like stop sell order, stop orders, trailing stops, etc. to your trading strategy. Here in this article, we will discuss in detail about stop sell orders. But, before that you should understand first, what is a stop order? Stop order Stop order is a kind of conditional order that a trader utilizes to either enter or exit any trade if the traded security has reached to a specified price level. These orders are utilized to make profits, limit losses, or to enter a new trade under some specific or predefined conditions. Automated crypto trading has become a new trend in cryptocurrency market and making use of advanced order types automates the trades. Stop orders allow traders to buy or sell any asset, once its price reaches a predefined level which you have set in advance. As soon as the market price of that particular asset reaches your predefined price, a stop buy or stop sell order will be executed automatically at the current market price. All this means is that if a trader is looking to sell BTC, he has two choices on how to sell it with a stop order. Either the trader can sell it at a higher price using a take-profit order, or he can prevent or limit his losses by setting a minimum price at which to sell the asset, using a stop-loss order. And, the same is true if he is planning to buy Bitcoin (BTC). The trader can set a specific price or the trigger price at which they want to buy BTC as per the current market conditions. Generally, a stop sell order is placed below the current market price, and it can be used to protect the gains and limit the losses on a long position. And, the buy stop order is just opposite to stop sell. Stop sell order The traders can use stop sell orders when it comes to selling a crypto asset. This order type includes stop price which triggers a market order. A stop sell order is placed whenever any trade enters at a stop price which is actually lower than the current market price of the asset. In case of sell stop order, the trader needs to define a stop price to sell an asset. Usually, the expert or smart traders use sell stop orders so as to protect their gains and limit the losses on the crypto assets which they own. Let’s understand it with an example: Suppose a trader has bought BTC at $35 per coin but wishes to risk no more than $5 per share loss on this trade. He places a stop sell order just below $30, say at $29.50. If the market price moves down to $29.50, then a sell stop order will be triggered, and BTC will be sold at the next available price. Most trading platforms only allow a stop order to be initiated if the stop price is below the current market price to sell and above the current market price to buy. Sometimes, this order type is also termed as stop-loss order as this order type can be used to help protect your gains, and seeking to minimize a loss. Confused? Let’s understand this order type in deep with other examples while longing or shortening a position:
If you are looking to initiate a short position below the current market price, then you should use a stop sell order to enter the short position. For example, if any asset ABC is trading at $50, and you want to get short the asset if the price falls to $47.50. You might place a stop sell order at $47.50.
If you have bought some coins of a stock, say XYZ, and are holding an open position, here you may place a stop sell order below the market price to exit your position. Advantages of using stop sell order Here are a few advantages or the top reasons to use stop sell order: Minimizing losses -The stop sell order helps traders to cut their losses. Many a timewhenever the price of an asset falls steeply, there are chances that your trade would have turned out to be ugly if you haven’t placed a stop sell/buy order. Automation- The stop sell order helps to automate the selling of the crypto assets and hence you need not to watch the market all the time. This order type is triggered automatically in case the asset reaches the predetermined price. Balancing risk and reward- When it comes to trading cryptocurrencies, maintaining risk and reward is important. In order to earn profits, you need to stick to a fixed amount of risk and using sell stop order will let you do so. Conclusion Here we have seen how stop sell orders work and are one of the best tools to lock in profits while trading cryptocurrencies. TrailingCrypto is one of the best crypto trading platform offering all the advanced order types and allowing traders to place their trades automatically. Advanced traders always use different trading order types rather than just a basic buy and sell market order. Buy and sell orders at market price will usually ensure that your trade is occurring, but it may also include slippage. Slippage refers to the difference between the expected price of a trade and a price at which trade is executed. It may occur anytime but is most prevalent at the time of higher volatility when market orders are used. Market prices change quickly, allowing slippage to occur during a trade being occurred and when it’s completed. To avoid such conditions, the best crypto trading terminal like TrailingCrypto provide advanced order types to the traders which allow them to specify buying and selling price in crypto trading. These order types eliminate slippage and ensure that the trade is executed at an exact price if and when the market reaches that price during the specified time. A variety of advanced orders are available to traders to set trades with specific parameters. Each trading platform will have its own set of offering of the trade order options. The most common order types used in cryptocurrency market are market, limit, stop, stop limit, and the trailing stop orders. Here we will discuss limit order to buy and a stop order to sell along with its advanced order types. Limit orders are the conditional orders which mean that order will only be placed if the price of an asset reaches to a certain level. Buy/sell limit order Both buy and sell limit orders allow traders to specify their own price rather than taking the market price at the time order is executed. Using a limit order for buy allows a crypto trader to specify the exact price they want to buy the crypto coins at. Usually, it is a calculated entry point. A limit order allows you to specify the maximum or desired price at which you want to buy an asset and the minimum price at which you want to sell. Sell limit order help traders to limit their downside risks while buying or selling their stocks. Stop sell order A stop sell order is used while selling a crypto asset. This order type is much different than placing a limit order as it includes a stop price that triggers the allowance of market order. These orders have a specified stop price. In this order type, a trader has to specify a stop price to sell their order. If the crypto asset price moves to the stop price, then a market order is triggered to sell an asset. Different than limit orders, this order type involves some slippage since there will be a marginal discrepancy between stop price and the following market price execution. A stop sell order is usually used to limit losses and managing already accumulated profits. Let’s understand it with an example: Say, a trader has bought XYZ at $35 per coin but wishes to risk no more than $5 per share loss on this trade. He places a stop sell order just below $30, say at $29.50. If the market price falls to $29.50, then a sell stop order will be triggered, and XYZ stock is sold at the next available price. Stop limit order Stop limit order is a type of conditional order which is executed if a certain condition is met. This condition is that the order is executed only when the market reaches a certain price limit. This certain price point is called the Trigger Price. Your order will be executed between target price and the trigger price. Target Price is the maximum price that you are willing to pay/receive while buying/selling cryptocurrency. Trigger price is the price point which when meet releases your order in the open order book. Traders use stop limit orders when they are not actively monitoring the market, and the order helps trigger a buy or sell order if the security reaches a specified point. Once the price is attained, the order is triggered automatically. Stop buy limit is used to buy a crypto asset if the price hits to a specific point. It helps traders to control the buying price of the crypto asset once they have determined an acceptable maximum price. A stop price and limit price are set here. On the other side, stop sell limit order is a conditional order where the trader sells an asset when its price falls to a specific price, i.e. the stop price. A stop sell order allows traders to sell the asset if the price decreases to the stop point or below. Since there are some risks with these order types, the experienced traders use trailing orders to protect their gains and cut the losses. Trailing stop limit order A trailing stop limit order allows a trader to specify a limit on the maximum possible loss, with setting a limit on the maximum possible gain. A trailing limit sell order moves with the market price and recalculates the stop trigger price at a fixed point below the market price based on the user-defined trailing amount. As the market rises, both the stop price and limit price rises by the trail amount and limit offset, but if the market falls, the stop price remains unchanged. And, when the stop price is hit, the limit order is submitted at the last calculated price. Similarly, a buy trailing stop limit order is the mirror image of Trailing limit sell order. Let’s understand Trailing limit sell order in depth: Enter a trailing limit sell order Say you buy 100 coins of XYZ for $66.34 and want to limit your loss. You set a trailing stop limit order with amount 20 cents below the current market price of $61.90. Trailing amount is the amount used to calculate the initial stop price, by which you want the limit price to trail the stop price. To do this, you have to create a sell order, click Trail limit and enter 0.20 in the trailing amount field. In this order type, you specify a stop price and either a limit price or a limit offset. Here we will set limit offset. You enter a stop price of $61.70 and a limit offset of $0.10. Market rises As soon as you submit your order, the price of the market starts to rise and hits $62. The stop price has adjusted accordingly and is at $61.80 and your limit price will also be adjusted automatically and is calculated as$61.70. Market falls Suddenly the market falls and XYZ drops to $61.90. Here your stop price and limit price will remain unchanged. Market price touches the stop point, order is triggered If the price of XYZ continues to drop and touches your stop price i.e. $61.80. A limit order to sell the XYZ for 100 coins at $61.70 is submitted to fill the calculated limit price better. Conclusion Ordinary stop limit orders only specify the amount of loss you define while placing the order. But on the other side, trailing limit orders automatically update your order to limit the maximum loss possible and turn the whole trade profitable. TrailingCrypto is one of the best crypto trading terminal that allows traders to use all the above order types and other advanced orders to mitigate their risks and maximizing the profits. Whenever a novice trader decides to enter the crypto market by copying the trades of the expert and successful traders, they come across the best crypto trading bot. This is called copy trading.
Copy trading is all about following the already in-profit bots, signals, or the expert traders. For this, all you need is to connect an exchange account to the right copy trading platform, check out their marketplace, and then following the strategy that you prefer for maximum profits. After performing these tasks, the copy trading platform automatically copies the trades to your exchange account. Copy trading Also known as social trading or mirror trading, copy trading lets you develop a trading strategy for you by copying the exact same deals of the successful traders. The best option is considering the automatic mode, but the manual one also works well. Of course, crypto trading can make lots of profits. But trading without knowledge and experience can cause huge losses to the novice traders. And, copy trading is something that helps novice traders to earn good profits. With this type of trading, the copiers will get the same results as profits or losses as the expert traders whose trades are copied. Copy trading allows traders to diversify their portfolio which means that a trader is using multiple ways to earn goof profits. Instead of putting all their capital into on position, or a strategy, traders can consider multiple trading strategies. How does copy trading platform work? For the traders, copy trading platform links their portfolio to the expert trader. After that, all the expert’s open trades are copied to the novice trader’s portfolio. Further actions are also copied. Therefore, the novice traders will get the exact same profits or losses as the traders they are following. Generally, copy trading is not dependent on the information of the expert traders, rather it is much dependent on the behavior of their trades. Copy trading also allows the traders to check the expert trader’s history and previous profits before copying them. Such trading methods are profitable and that’s why copy trading is gaining huge popularity. Additionally, choosing a copy trading bot at the best trading platforms like TrailingCrypto automates the whole copy trading process for you. These bots automate the buying and selling of the crypto assets by copying the original trades of the expert traders. As a crypto copy trading user, you have to deposit some initial amount which could be as low as $50. Select the expert trader or a copy trading bot on the copy trading platform where everything will be automated. The best crypto trading platforms available for copy trading allow traders to put stop-loss orders on copy trading so that they can have an exert control over the potential risks. With copy trading, you are getting a replica from the expert trader’s real account. Basically, there is a master account, and the follower account. Whenever the master opens, closes, or exits any trade, all their activities will be replicated to the follower account automatically. All that means, if the expert trader opens any position with 5% of his balance, you will use 5% of your invested amount to that trade too. Selecting the right copy trading platform is important while considering its pros and cons. Always make sure to choose a copy trading platform which is integrated with the trusted platforms like KuCoin, Binance, etc. Let’s understand all this with an example: Note: Often copy trades are limited to 20% of the trader’s portfolio. Let’s say, a trader might have $5000 in his account. However, if they are no open trades, they can copy the successful traders. If the trader is a beginner, it’s important for him to not invest in larger amounts. Instead, it’s better to invest 10% of the total amount i.e. $500 when they are copying the trade. The expert trader may have one open trade and this trade will be copied in the copy trader’s account. And, you know $500 is actually the percentage amount from the trader’s portfolio. It will be 10% of their portfolio. And, the copy trader will also follow the same of they have conducted the trade for $500. Is copy trading really beneficial/profitable? Copy trading may result in higher profits if the trader finds the right and successful trader to copy. However, the greatest risk a trader might face while copy trading is market risk. If the strategy a trader is copying is unsuccessful, they may lose money. They may also face liquidity risks and systematic risks. It’s always better to choose the copy trading bot to automate your trading. Benefits of considering the copy trading bots There are numerous benefits of choosing the copy trading bots as compared to manual trading:
The best copy trading platforms The award-winning crypto copy trading platforms allows traders to directly copy trades and technical analysis on to their own charts. Copy trading is a portfolio management strategy where one’s trades are transacted automatically. Traders can certainly make money through copy trading but considering the right trading platform is important So, which trading platforms are the best for the crypto traders? Let’s have a look at these:
All these crypto trading platforms work with complete automation and allow crypto investors to copy trades from the expert traders. These platforms help traders to make the most of their trading strategies, reducing losses, and maximizing their profits. TrailingCrypto is the best crypto trading platform allowing traders to automate their trading. Conclusion Crypto copy trading has become increasingly popular among the novice traders who want to generate profits without researching much. This type of trading allows beginners to follow the professional traders. The best crypto trading platforms offer copy trading bots to automate the copy trading. And, it’s up to you which platform you choose to copy trades from the experts! So, you are already familiar with the terms cryptocurrency, trading, order types, etc.? This means you are registered on several exchanges.
There are different types of orders which traders use in crypto trading. This includes stop order, limit order, market order, and more. Apart from these order types, you might have also heard about advanced order types, and Take Profit order is one among them. The traders’ places Take Profit orders so as to trade safely and avoid having to monitor the market 24 x 7. So, you want to know, how to place the order correctly? Want to know more about it? Let’s understand about Take Profit order first: Take Profit order - A precise explanation It is a type of order which locks the profit when the asset price reaches at a certain level. Take Profit execution leads to the position closing with a profit and this order type is always associated with an open position in the market or with the pending orders. Take Profit order is a tool set by the traders on the crypto trading platform by making use of the best crypto trading bot to exit a position automatically at a predetermined price. This order allows you to achieve higher returns or mitigating the risks. TrailingCrypto is one of the best crypto trading platforms allowing its traders to set Take Profit orders for their trades. Take Profit orders are the limit orders which are closed when a specific price is reached. These orders are beneficial for the short-term traders who are interested in profiting from a quick bump in the asset price. The benefit of using a Take Profit order is that the traders do not have to worry about executing the trade manually as the trading bot will execute it automatically. How does a Take Profit order work? Ordinary Take Profit order works very simply. When the price of the crypto asset rises to or above the specified price, the crypto exchange will close the deal based on your strategy. For example: You bought 1BTC at 10,000 USDT, and set Take Profit +10% This means, you have created the order to sell Bitcoin at 11,000 USDT. For some time, BTC traded with 1000 USDT, and then continued to grow. Upon reaching at the level of 11,000 USDT and above, your pending order with Take Profit +10% will be filled and the bot will close the trade with a sell. However, ordinary Take Profit is often not enough to earn good profits. If you want to increase your profit, you should choose Trailing option. This allows you to immediately close the deal when the price reaches the target price in Take Profit. But the trailing follows further if the price rises above the Take Profit level. And, if the price starts to fall, Trailing Take Profit will automatically close the deal with a greater % profit than using without trailing. Take Profit with crypto trading bots Take Profit strategy has a special role in the best crypto trading bots. Since the bots provide safety order and averaging by default, there is no ordinary Take Profit order. Here, you need to set the percentage of profit you need. If the price of a certain crypto asset drops after buying, the trading bot will place a safety order automatically, and buy additional coins for averaging. And, this will continue until the time the deal is closed. Take Profit percentage specifies how much profit you will earn from a trade as a percentage of the order value. Take Profit and Trailing Take Profit orders are intended to maximize your profits you would have in trading by trailing or following the price of a crypto asset and determining when to sell that asset, based on whether the price is moving up or down. What is Trailing Take Profit (TTP) order? Trailing TP orders are placed by the traders so as to increase the gains whenever price of cryptocurrency moves in a favorable direction. TTP orders are designed to lock in the profit and limit losses. This order type only moves up once the price has surpassed the previous high and a new high has been established. If the trailing Take Profit moves up, it cannot move back down. Thus, it will secure profit and prevent losses . Let’s understand how it works: Suppose you buy BTC at $10000 and set Take Profit at 11000 and a trailing Take Profit at 5%. If the price moves up to $10500, nothing will happen as we have set TP at $11,000 which has not been reached. Now, if the price of BTC goes up to $11000, a stop order at $10,450 will be set. If the price moves down to $10500, the stop order will stay at $10,450. Then if the BTC price moves up to $12000, the stop order will move to $11400 And, if again it reaches to $11000, the stop order at $11400 will be executed. Here you will see that without TTP, the buy order would have been sold at $11000. Thus, the trader will miss the opportunity at $11400. So, TTP is an effective tool that will be activated once a Take Profit order reaches the order price. When it happens, instead of executing the ordinary Take Profit order, the best crypto trading bot will create the trailing order. How do Take Profit and Trailing Take Profit work? Take Profit example Let’s say, you bought BTC at $100 and set a Take Profit at 10% This means, when the price reaches $110, your Take Profit order will get triggered and the trade will be closed. Trailing Take Profit example Trailing Take Profit will not be constant at $110, but it will continue to change based on how the price moves. For Trailing Take Profit (TTP) orders, we need to define another parameter, Trailing Limit, which means how much the price is allowed to fall from the peak before selling the asset. So, Trailing Take Profit will help you maximize the profit and exit the trade at the right time. BitMex is one of the exchanges supported by TrailingCrypto exchanges and it offers BitMex margin trading. The exchange offers traders an opportunity to use leverage in bear markets to earn some cash. The platform offers 100X leverage on short trades and thus it has a massive opportunity of almost doubling your investment within a short time. What is margin trading? Margin trading involves carrying your trade using borrowed funds that you speculate that will magnify your returns in cryptocurrency selling and buying. When using leverage you access enhanced purchasing power and as a result, you can easily open large positions compared to your actual balance. For instance, in BitMex margin trading you will have 100X leverage meaning that you can leverage your position such that if the market tips to your favor you will get 100 times in profits. Interestingly it can amplify losses too when the market is against you. How Bitmex margin trading works BitMex allows traders to create anonymous accounts but to begin trading you will have to deposit Bitcoin (BTC) to the account. Other cryptocurrencies such as Ripple, Litecoin, and Ethereeum or any other altcoin are not accepted. You can take advantage of 100X leverage on your contracts but the leverage amount will depend on your initial margin that is the money you deposit when opening a position as well as maintenance margin. The cryptocurrency exchange doesn’t trade in Bitcoin but rather it deals with contracts which are agreements to sell or buy cryptocurrency without owning them. When you withdraw your money you receive the contract funds in Bitcoin in your account. To leverage cryptocurrency trading on Bitmex you can either go short or long. When going long it means that you expect the contract you have purchased to increase in value. On the other hand, when shorting it means you expect the price of the contract you are holding to go down and thus you sell it so that you can later buy it at a lower price. To open a position it means Bitmex will hold part of your balance as collateral for the amount you borrow. If the market moves in your favor you will close your position and earn profits and the collateral is refunded with the profit minus any charges. Similarly if market tips against your prediction you will lose and the trade closes automatically and the collateral is liquidatedonce the market reaches the liquidation price. Types of contracts on Bimex for margin trading There are two contract types that the exchange offers for BitMex margin trading. Perpetual contracts: These contracts are also known as perpetual swaps and they are the first contracts one will trade when they start. The contracts don't have an expiry date and thus are ideal for short term day trading. The rate of interest is variable and you can add or subtract cash flow from your equity. Futures Contracts: These kind of contracts have an agreed-upon date to sell or buy the contract at a specific price. They have a fixed interest rate making them ideal for long-term trading or near-term investing. Bottom line BitMex margin trading can offer massive returns to investors because of the high 100X leverage but it is important to note that this kind of trading is risky and requires experience. Trailing Stop Sell Order And Trailing Limit Sell Order as Trading Techniques To Optimize Profits7/16/2021 When trading there are different types of techniques one can employ to optimize profits and reduce losses. The most common techniques are the trailing limit sell order and the trailing stop sell order. These techniques allow one to set specific conditions under which there will be an automatic trigger of the order for selling. Applying these techniques means that the trader doesn't have to be hand on to sell their position and they are cushioned against any unexpected downswings. Trailing stop sell order A stop sell order is one that sets a fixed stop price just below the current market cost and there is always a tracking amount attached. The trailing amount is set to rise with market cost movements and it constantly recalibrates order's stop trigger cost usually at a set amount below the current market cost depending on the trader's set tracking amount. On the other hand, if the cost drops there is a stop-loss price which is constant that the order cannot fall past, and once it hits the stop price the order is submitted. When using this technique the instead of a stop prices the trader defines a specific percentage below or above the market to limit losses if cost falls. If the cost of the trade moves in a favorable direction then the set limit amount will adjust relative to the market cost by the defined amount. Alternatively if the cost of the trade heads in the negative position then the amount that you have set will stay fixed and once the cost hits the tracking stop price then the order is triggered. Most importantly when deciding to use this kind of sell order it is vital to be keen when deciding the tracking cost because near term market movements in price can easily activate the order. Trailing limit sell order On the other hand, a limit sell order is usually priced at a considerable price from the current market price and it differs from the trailing stop sell orders that aresubmitted once the stop price is triggered. This kind of sell order differs from the stop sell in that the trade is re-priced relative to the current market. The trailing price is set at better levels compared to the market price. This means that with this type of sell order you will set the trailing price above the current market prices. The order will therefore only move lower once the market price drops to the lowest level of the recent market price. On the downside, the order will not adjust relative to the market if there is an upward movement in price. The trigger for the order comes when the price drops a given percentage from the recent high price high. If for instance a stock has been on an upward trend and the percentage of trailing amount is 10%, if the stock hits highs of $100 then the trigger will come if the price falls approaching $90. Alternatively one can use the tracking limit price that is specified in advance before setting the trade. A Trailing stop loss is a special type of market order used for risk and trade management. The popular stop-loss order features two components. The first feature is used to trail price as it moves either up or down. The second feature closes down a position when price moves against a trader by a set percentage point or dollar amount.
Stop-loss orders that track price as it moves from one level to another prove are highly effective as they allow traders to remain in the market as price moves in their favor. Likewise, they enable traders to lock in maximum profits on every position opened. Brokers, as well as trading bots such as TrailingCrypto, offer such types of stop-loss orders, making it easy for traders and robots to lock in profits and minimize losses on positions. Likewise, these types of stop-loss orders alleviate the need to continually reset an order as part of trade and risk management. How Trailing Stop Loss Orders Work Unlike normal stop-loss orders that remain fixed at a given price level, trailing stop loss moves and tacks underlying price. For instance, when a trader opens a long position, the trailing stop buy order will trail price as it moves up and only stop trailing as soon as price reverses and starts to move lower. A long position is closed down as soon as the price moves lower by a set percentage or dollar amount. In the case of a short position, the stop-loss order will trail the price as it moves lower and only stop trailing price as soon as price reverses and starts moving higher. Likewise, the order will close down a position as soon as price reverses and moves higher by a given percentage point or dollar amount from the current price. Example Consider stock XYZ trading at $25 a share with the potential of trading higher on a positive financial report. A trader opens a long position and triggers a trailing stop buy order with a trailing amount of $2. At the start, the trailing stop buy order whose role is to mitigate against any downside action would be set at the $23 price point. As soon as price moves higher, say to $27, the trailing stop will also adjust itself by moving higher, as well, and setting itself at $25 level. Price rising to $30 price level will also see the trailing stop order adjusting itself at $28 level. However, as soon as price reverses and starts moving lower, the stop-loss order remains fixed at the recent price point. For instance, price moving from $30 to $29 will result in the buy stop-loss order remaining set at the $28 price point. As soon as the price drops to the $28 level, the stop-loss order will close the position. In this case, the trade will lock in a maximum of $3 in profit on each share bought ($28-$25). In case of a normal stop-loss order, the trader would have incurred a loss of $2, on price dropping to the $23 price level. Conclusion Trailing stop loss is a risk and trade management order that ensures losses are kept at a bare minimum while locking in maximum profits. The market order can be used to mitigate against any downside movement in case of a long position and against any upwards movement in case of a short position. Trading bitcoin and other cryptocurrencies successfully requires the use of technical tools and risk management techniques similar to those used in forex trading. One such tool is the trailing stop loss which in the traditional sense is all about helping the trader minimize his or her losses. However, let us dive in to understand how it works and how to implement it successfully in your crypto trading strategy. A trader can place a stop sell order which will be triggered when the price reaches a certain level, and it represents the maximum loss that the trader is willing to risk before closing the position to avoid further risk exposure. A trailing stop order is classified as a stop order type that takes into account both trade management and risk management with the common goal of protecting the trader’s profits. In this case, a trailing stop loss is an order type put in place to curtail the losses if a trade goes in the red. The difference between trailing stop loss and a regular stop order There is not much difference in the execution process for both trailing stop and the stop order. The difference in the two is that the stop sell order is set at a specific price range while the trailing stop order shifts with the price changes. If the price of the asset moves up by 5 cents on a long trade, then the order type also moves up by 5 cents. However, it moves in only one direction and so it does not shift in the opposite direction if the price shifts below. The trailing stop order can be executed alongside the regular stop order. However, the latter may become redundant or obsolete once the trailing stop order climbs above the stop sell order if the price of the asset continues to go up. The above approach makes sense for traders because it not only allows traders to minimize losses but it also makes it possible for traders to take profit if the order is triggered at a level above where the losses begin. This is an ideal situation if the price goes high enough. This type of approach is ideal in highly volatile market conditions and that is why it makes a lot of sense to use it in cryptocurrency trading. Digital assets like Bitcoin are known to be quite volatile and so one can take advantage of strong bullish or bearish trends. You can execute such orders to secure deep wins while also preventing loss of profits in case there is a strong price reversal. TrailingCrypto is one of the most ideal trading platforms for cryptocurrency trading especially using the two types of orders. It provides a variety of trade customization options in the order type segment on the website. The platform also provides decent variety when it comes to the cryptocurrency pairs that traders can play around with, including charts and chart tools for proper technical analysis. One of the best features offered by TrailingCrypto is the ability to switch between cryptocurrency exchanges within the platform. This provides traders with more flexibility since they do not have to exit the platform. The trading platform is also designed to be intuitive and easy to use so that traders can have a smooth experience. It is a brave new world that is characterized by digital currencies otherwise known as cryptocurrencies which have for the past few years been making headlines. Cryptocurrencies have become quite an exciting global phenomena and it is no surprise that many people want to get in on the action. Speaking of, getting involved with cryptocurrency has become quite easy. You can purchase and own a cryptocurrency in just a few clicks. But let’s be honest. Most people want to get into cryptocurrencies so that they can make money. So, here are a few ways in which you can make some extra bucks from cryptocurrencies. Cryptocurrency mining Cryptomining is not even remotely related to the traditional sense of mining activity. It refers to the process in which individuals lend their processing capacity to the blockchain network on which a specific cryptocurrency exists and the processing capacity is used to calculate transactions in the network. This approach will, however, require you to invest in expensive computing equipment and things will get a bit technical. Buy low sell high This is the reason why many people became rich during the crypto bubble before it popped. The idea here is to buy cryptocurrencies while their price is low and then sell when the price goes higher. This approach is however not as efficient now that cryptocurrency prices have become more relatively stable as opposed to previously when the pre-2018 period where the prices were characterized by massive volumes and huge price changes. There are cryptocurrencies that still offer growth potential and thus some opportunity to tap into the buy-low-sell-high strategy. You would however need to invest a substantial amount of cash for you experience noteworthy gains. It might thus not be the most efficient approach. Day-trading cryptocurrencies Cryptocurrencies can be traded the same way fiat currencies are traded in the forex market. However, cryptocurrencies offer more advantages. They are available 24 hours 7 days a week and they tend to have more volatility than fiat currencies, which means that they offer more trading opportunities than their fiat counterparts. You need to have a basic understanding of day trading to successfully day trade cryptocurrencies. This means understanding how they work, the forces that drive price changes and technical analysis skills. This is perhaps currently the best approach to earning money through cryptocurrencies right now because it does not require a huge investment or the need to purchase any equipment. You can trade in the comfort of your home and all you need is a reliable internet connection, a computer, and a reliable cryptocurrency exchange platform. The above interface is of a platform called TrailingCrypto and it is one of the best crypto trading platform that you can find out there. It offers an intuitive interface that is easy to understand and maneuver, flexible trading options and a variety of cryptocurrency pairs. It also allows users to securely connect to a variety of cryptocurrency exchange platforms within its interface as part of its strategy to offer a wholesome experience. The charts and charting tools on TrailingCrypto cryptocurrency trading platform combined with reliable trading strategies should help you identify good entry and exit points. This will allow you to take advantage of the opportunities in the cryptocurrency markets. |