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How does Trailing Stop-Loss work?
How does Trailing Stop-Loss work?

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

Pete Darby avatar
Written by Pete Darby
Updated over 2 months ago

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.

  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.

  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.

    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".

  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.

  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.

  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.

  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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