Image source: https://www.google.com/
Here is a solution to set both stop loss and take profit work in one trade. i will explain you briefly in this blog, Simply we take profit when price rises to up or above the price we set, The system close the transaction for example:
Buy 1 ETH for $100 and set take profit of +10%, at 110%.
ETH trade in $100 when price rise up to $110 then the system sells the ETH in market. Take profit ensures you do not miss a profit at times when you are not watching closely the trade. But there is one another option for maximize our profit Trailing take profit suppose we trade of 1 BTC at $8000 and we set take profit at $8500 then market rise to $8500 for a while and then rises to $9000 now what will happen normally our profit target is already set at $8500 and the system will execute at this target. But if we use trailing take profit than trade will closed at $9000 instead of $8500 so clearly there is profit of $1000. this is the power of trailing we can use it in both case take profit and stop loss.
I will show you the example below how to trailing take profit works step by step:
Trailing profit is intended to maximize profit
Buy 1 BTC for $10000 and set take profit +5%,$10500
check the trailing box, set follow maximum price with deviation 3%
After a while BTC price reaches $10300 then trailing take profit does the following
| No. | BTC price for 1 unit | transaction status |
|---|---|---|
| 1 | $10300 | Open |
| 2 | $10400 (rise) | trailing take profit activated |
| 3 | $10500 (rise) | trailing take profit activated |
| 4 | $10300(correction) | trailing take profit activated |
| 5 | $10600(rise) | trailing take profit activated |
| 6 | $11000(rise) | trailing take profit activated |
| 7 | $10700(correction) | sold at approx $10699 |
As result transaction close at roughly $10700. This brings profit 7% instead of expected 5%.
Briefly, this is the maximum deviation downward from the maximum price reached after the Take Profit level was reached. If you set Take Profit at +10% with price deviation of 2%, you can wind up in the following situations:
The most common stop loss, when the price falls to or below the price we set the system execution take place.
trailing stop loss follow the price of coin. For example:
Buy 1 BTC for price $10000 and set stop loss 10%, $9000
Check the trailing box.
BTC trades at around $10000 for a while, but then begins to rise. In this case, the approximate action of Trailing Stop Loss will be as follows:
| No. | BTC price for 1 unit | Trailing Stop loss value |
|---|---|---|
| 1 | $10000 | $9000 |
| 2 | $10500(rise) | $9500 |
| 3 | $11000 (rise) | $10000 |
| 4 | $11500 (rise) | $10500 |
| 5 | $12000 (rise) | $11000 |
| 6 | $11000(correction) | $11000 |
Thus, the higher the coin price deviates from the initial price, the higher the Trailing Stop Loss will rise. When the price falls, Trailing Stop Loss will not change.
you can check further information in 3commas .io about trailing take profit and trailing stop loss. From my experience its amazing i hope you can take huge profit from this site. for registration go to link below and make an account to smart trade.
[https://3commas.io/smart_trades]
thank you
