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How does Trailing Stop-Loss work?

Automate selling with Trailing Stop-Loss: set parameters, activate, and optimize your trading strategy effortlessly.

Written by Alan Smithee

Trailing Stop-Loss is a powerful tool that helps you automate your selling process based on predefined parameters. Here's how it works and how to set it up:

  1. Enable Trailing Stop-Loss

    Go to the "Trailing Stop-Loss" settings in your Base config and toggle the switch to activate "Trailing Stop-Loss" in your trading bot.
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  2. Trailing Stop-Loss Percentage

    Set the percentage at which you want the open position to drop before triggering the Trailing Stop-Loss. Once this percentage is reached, your trading bot will sell your open position.
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  3. Arm Trailing Stop-Loss

    Specify the percentage of profit your open position needs to achieve before the Trailing Stop-Loss is activated and the open is getting tracked. This ensures that you cover any trading fees incurred.
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    For example, if you set it to 1%, the Trailing Stop-Loss will be armed when the position hits a 1% profit. The trading bot will then sell the open position if it drops by the "Trailing Stop-Loss percentage".
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  4. Trailing Stop-Loss Timeout
    Configure the time when the trailing stop-loss should hit after the trailing stop-loss percentage has been reached. Configuring a time-out helps avoid selling when a price just quickly dips and then recovers.
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  5. Use Trailing Stop-Loss Only

    Enable this setting to exclusively use Trailing Stop-Loss for selling open positions. When enabled, the trading bot will not sell your open position when your Take profit, Sell based on strategy, or Short based on strategy signals a sell.
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  6. Reset Stop-Loss After Failed Orders

    Toggle this switch to reset the Trailing Stop-Loss setting after a canceled order. Orders may be canceled if they are not filled or remain open longer than configured.
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  7. Only Sell with Profit

    Activate this toggle to ensure that positions are sold only with a profit when the Trailing Stop-Loss is triggered. If the Trailing Stop-Loss would result in selling a position at a loss, the sell order will not be executed.

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