ProfitTrading App for Android — How to use Trailing Stop orders
Trailing Stop orders are one of the most powerful type of orders in Profit Trading app. It can give you very good profits if the market goes with you. Let’s explain how does a Trailing Stop order work. There are two types, Trailing Stop Sell and Trailing Stop Buy, we will explain the first one (the second one works the same way but buying instead of selling).
There are three main concepts on Trailing Stop orders: ‘Trigger Price’, ‘Trailing’ and ‘Stop Offset’. The first one indicates the price (also called rate), that you want the order to start. Once the Trigger Price is reached, the order will start trailing. Trailing consists of setting a dynamic sell price that will increase depending on the current coin price. This stop price is defined by an Stop Offset percentage, used to calculate the stop price this way:
Sell price = Top reached rate minus a stop % offset
While the price is rising, the selling price will be increasing as you can see in the following chart:
The order started at ‘a’ point with a defined trigger price of ‘b’. When this price is reached, the selling price is defined from that price minus a defined percentage. After that, if the coin rate keeps increasing, the selling price will increase too as you can see in the chart on points ‘c’ and ‘e’. Once the price falls, the order will sell when the price reaches the selling price at this moment on point ‘f’.
Setting Trailing Stop orders in ProfitTrading app
It’s really easy to place Trailing Stop orders in ProfitTrading app. To configure one, just go to TradingBot section, write the coin you want to trade and press ‘+’ button. Then select ‘TRAILING STOP SELL’ operation.
Then select the Trigger Pice, the Stop Offset, and the units to be sold. Apart from this, you should select the multiplier. The multiplier is a value used to ensure that your order is filled. It will apply a percentage to your order price, to place a price a little lower than current bid. This way you ensure your order will be filled, but note that the final price will be the best BID price available at this moment.
When you are done, press ‘SAVE’ button to create the bot. From now, the bot will start checking prices and doing the hard job for you, so you don’t need to care about anything. You can check the bot status whenever you want like shown in the next image:
In that resume you can check, the bot status, the top bid reached, your trigger price, stop offset and units.
That’s pretty all about Trailing Stop orders. You can combine them with other orders, for example you can create a BUY order as first operation and then add a Trailing Stop Sell order as second one. You can also add a STOP LOSS operation later to cover the case when the Trigger Price is not reached and the market goes against you.
Trailing Stop operations are one of the most successful operations between ProfitTrader users. Start using it to get profits!
Your clap is highly appreciated, thanks!
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- Take advantage of Bitcoin fluctuation to get profits with ProfitTrading App
- ProfitTrading App — How to make profits with signals and the trading bot
- ProfitTrading App — How to place Split Sell orders
