Using bots can be a great way to enhance your trading experience on the FODL platform. They can track your positions and execute or close trades for you automatically, so you can get a good night’s sleep knowing that your limit orders, stop losses, and take profits will be fulfilled.
As you’ve probably seen on centralized exchanges, you can set an order to open a position (buy or sell) when your chosen coin hits a specified price, up or down from wherever it is when you set the order.
Every position on FODL is a smart contract and so are the bots. However, at present, the platform is running in beta and the bots are not yet available — they’ll become active in the final release.
STOP-LOSS BOT
This bot will allow you to set a lower-bound price at which your position will automatically be closed. It allows you to mitigate losses at a threshold of your choosing.
TAKE PROFIT BOT
The opposite of the stop-loss bot, this allows you to set an upper-bound price at which your position should be closed. Let’s look at one example of how you would set up a stop loss bot below:
HOW TO SET THE STOP LOSS AND TAKE PROFIT BOTS
On your dashboard, you’ll see an overview of your open positions. Click the cog/gear icon at the right of any position to open the settings.
You will see that there are three sliders you can tweak to your liking — the first is the stop-loss limit. With this you can set the price at which the bot should close the trade.
Next, you have an option to adjust the unwind factor. This will set the percentage, by which your position will be decreased when the action is triggered.
Lastly, there is a slider which allows you to set the percentage of the commission that the bot is incentivized with. Since the bot’s activity will require a gas fee, the more you’re prepared to give, the more quickly it will act to close or reduce your position when the time comes. This is particularly useful if you’re working with precise figures and do not want to diverge far from your set exit price. The recommended incentive is a function on your position size. It should at least cover the GAS fee the bot will need to pay which is currently around ~.2 ETH on a bad market move.
Changing the settings of any of these sliders will automatically update the values in the lower section of the box.
The take-profit bot works in exactly the same way but in the opposite scenario — you’d set this to be the price at which you expect to see a downturn and want to et out of the trade.
After setting your stop-losses and take-profits, simply hit Save. Now you can stop thinking about your trades until the next time you have the mind to log in, safe in the knowledge that the bots will be obeying your instructions wherever the price may go!
IMPORTANT: Don’t forget to use caution when using FODL beta. While FODL bots have proven reliable and fast, due to Ethereum’s reliance on miners and network performance to execute transactions, no transaction can be 100% guaranteed to execute.
Hope this helped you in any way friend! Cheers!
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“Disclaimer: This article is not trading or investment advice. The above article is for informational and educational purposes only. Please do your own research before purchasing or investing in any cryptocurrency or digital asset.”
