Trailing stop loss

The "Trailing Stop" feature attempts to "lock-in" profit and to keep locking in more as the market keeps moving in your favour.

It works in the following way:

  • The bot will place all new sell orders a couple of per cent higher than "normal". With "normal" being the price where it "normally" would have been given your configured minimum trade percentage.

  • If the market price has risen to above the "normal" price plus a small amount (usually less than 1%), then the higher-up limit order is replaced by a stop-loss limit order at the "normal" price.

  • If the market keeps moving in your favour, then the stop loss limit order will be "lifted" as much as possible, keeping some distance to it (usually 1-2%) as "wiggle space". This is the "trailing" part of it all.

  • If the market keeps moving in your favour and the current market price exceeds the "normal" prices of any other open higher-up limit orders, then these will be cancelled and their quantities will be added to the trailing stop loss limit order.

About risks:

  • There is some loss in efficiency as the minimum trade price is effectively increased by a small amount (usually less than 1%)

  • There is also some efficiency loss because the code may be just too late to drop the limit sell and the market has moved already to your disadvantage.

  • In rare cases, the market price just "falls through" the stop loss limit order too fast for it to be triggered and the coin does not get sold at that moment.

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