Cryptorobotics’ best solutions for traders: Stop Loss and Take Profit

To trade cryptocurrency, traders use various tools that help reduce the risk of losing their funds and the trading process more efficient.

Stop Loss and Take Profit are considered to be some of the essential functions that are used to implement a strategy correctly as well as to make significantly straightforward the trading process itself.

In this way, the Cryptorobotics trading platform allows traders to prevent losses and increase income by using the Stop Loss and Take Profit. This type of order has two important aspects:

• The position is opened or closed automatically.
• The actual opening/closing of a trade does not occur immediately but after a certain period of time.

Thus, a trade can be opened/closed without the involvement of a trader.

What is Stop Loss and Take Profit?

Stop Loss (SL) is designed to protect the trader’s funds during trading. Usually, such an order is placed as an addition to the open position and is used to reduce the risks.

Take Profit (TP) is also placed in addition to an already open position. Its main task is to set a target level of profit.

How does Stop Loss work?

Let’s take a closer look at how Stop Loss works. For example, you bought one coin of BTC at a price of $40,000. The maximum loss that you are willing to incur on this trade is 10%.

In this case, you have to place a Stop Loss at the level of $36,000. In case the chart starts moving in a disadvantageous direction for you, then when the rate reaches $36,000, an order will be placed for selling at the market value automatically. Moreover, this will occur irrespective of whether you are now signed in to your exchange account or not. Thus, you will get a loss of 10%. But, in any case, this figure will not be exceeded.

How does Take Profit work?

In order to get more information about how Take Profit works, let’s look at the following example.

Let’s assume that you bought one coin of BTC at a price of $40 000. The income that you want to get from this trade is 20%.

In this case, you need to set your take profit at $48,000. If the exchange rate chart moves in a favorable direction for you, then when the quotes rise to $48 000, 1 BTC will be automatically sold at the market price.

Similarities and differences between Stop Loss and Take Profit

How to customize the Stop Loss and Take Profit on the Cryptorobotics platform?

Considering that Stop Loss and Take Profit are customized to fix profit and loss, it is first necessary to open a basic deal in relation to which pending orders will be placed. Any type of order available in the terminal can be used to place a market, limit, and stop-limit orders. Let’s take a look at a limit smart ask order.

To set up Stop Loss and Take Profit, you have to click on the “Smart order” button or the Buy button, and you will see the drop-down menu with settings.

The upper part is intended for placing a buy order. Here, you should specify the following points:

• The price at which you want to purchase this coin.
• Amount of the cryptocurrency that you want to purchase.
• You have an opportunity to select a percentage of the deposit (25%, 50%, 75%, 100%). You can specify the percentage of the deposit by yourself or select it from the quick options.
• You can also set the balance in the main currency. If you add your cost there, then the required amount will be updated in the Number of coins.

The price can also be customized by moving the level on the chart.

After that, you can customize Stop Loss and Take Profit. You can use these tools both together and separately. You need to press the Set Stop Loss, or Set Take Profit button if you want to activate these functions.

Moreover, you can use Trailing for Stop Loss and Take Profit.

What is a Trailing Stop?

A trailing stop is a stop order that can be customized to fix a percentage or amount of funds below or above a current market price. This function is capable of minimizing losses and increasing your profit.

What are the Trailing Stop Loss and Trailing Stop Buy?

A Trailing Stop Loss is intended for moving up on the chart when the price grows.

A Trailing Stop Buy is used for moving down on the chart when the price falls.

Trailing stops are very useful, but these tools should be used by experienced traders who understand the crypto market, as this function requires good skills and knowledge to use it.

How does Trailing work for Stop Loss on the Cryptorobotics trading platform?

In order to activate the Trailing function for Stop Loss, it is also necessary to add a checkmark. When the price of the coin rises, Stop Loss will be automatically pulled up.

If the price falls, it will not move, and the order will close at the value that you specified for Stop Loss or the price where Trailing pulled it.

We advise you to use Trailing for Stop Loss only in a growing market. If the market is flat, this function can reduce your profits.

How does Trailing work for Take Profit on the Cryptorobotics trading platform?

It is activated by adding a checkmark, and you need to specify the distance in %. When the specified Take Profit is reached, if the price continues to grow, then the Take Profit moves upward with the deviation you specified.

After you have specified all the parameters, you need to click on the green Buy button in the lower-left corner, and the order will automatically start working.

If you already have an asset in your portfolio, and you want to place Stop Loss and Take Profit on it, then click on the “Smart order” button or the “Sell” button.

When Stop Loss and Take Profit are activated, our terminal will search for exit points according to the values ​​specified in them. You can set the cost at which you bought this coin in the Price section, and set Stop Loss and Take Profit on this basis.

After you have placed an OCOs, or smart order, it goes to the “My Orders” section, marked — smart limit as well as in the Orders section.

Until the order is executed, you can make changes to it.

Conclusion

Stop Loss and Take Profit are important tools for working in the cryptocurrency market, which allow you to drop a drain on your earnings and fix profits. Besides, due to Stop Loss and Take Profit, experienced traders can more accurately follow their strategy and get a profit without having to monitor the computer 24/7. Therefore, each market participant should investigate the opportunities of such functions and apply them in their activities.