Oct 29, · Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy. Step #5: Place your SL below the breakout candle and take profit once the OBV reaches , Placing the stop loss below the breakout candle is a . Jun 03, · What is a Stop Loss Order? A Stop Loss Order is a type of order where a user can set the amount of an asset they wish to sell at a desired price BELOW the current market price. For example: The price of Bitcoin is currently at $15, and you want to sell if the price drops to $14, I wanted to be able to set both stop loss and take profit conditional orders at the same time. As of now you can only set one or the other. My bot will buy at desired price and set a stop loss and a take profit trigger at specified targets. Plus it has a trailing stop to get more profits when coins keep pumping.
Stop loss take profit bitcoinTutorial on Take Profit & Stop Loss Calculation | Company Updates| OKEx Academy | OKEx
The trigger price is used to let our system know when to execute your order. If the market is moving rapidly, your order may execute at a different rate to what was specified, due to the state of real time order books. This may work in your favour and you may sell your assets for a price higher than you listed, however it may also execute at a lower price. Please note that our system will always attempt to execute at the trigger rate or as close to the rate as possible.
Please manage your risk appropriately when using these features. The fee will be displayed clearly on the confirmation window prior to confirming the transaction. Although these orders types generally fill at approximately the price specified, notable slippage may cause an order to execute at a lower rate. CoinSpot is not responsible for any losses incurred as a result of using any of our order types. Need to Cancel an Open Order? What is a Stop Loss Order? How do I set a Stop Loss Order?
What is a Take Profit Order? How do I set a Take Profit Order? In the case of the first, a market order is entered when a security reaches a specific price. Limit orders , on the other hand, are designed to set a maximum price for what an investor is willing to pay when buying or a minimum price the investor will accept when selling. If it breaks out of its current trading range and starts climbing, you want to purchase it to benefit from the rally.
One factor that can have a huge impact on the usefulness of both market and limit orders is volatility. During times of volatility, the prices secured by market orders could vary quite a bit. By setting up buy market orders, you could end up purchasing bitcoin at a higher price than you originally desired. Using a stop-market order to cap losses could produce similar results. By using one of these orders to limit downside, you could end up selling your bitcoin for significantly less than you originally wanted to and therefore incurring a loss that is outside your comfort zone.
While stop-market orders can result in a wide range of purchase and sale prices, stop-limit orders might not execute at all if your price conditions cannot be met during the time frame when the order remains open. If bitcoin prices are too volatile, or if the difference between the bid and ask is too large, a limit order may fail to fill, preventing you from purchasing bitcoin in your desired price range or exiting a position with a reasonable loss.
If you decide to use stop orders in your bitcoin investing, there are several tips and tricks you can use. If you are just getting started using stop orders, you may be better off sticking with market orders , as these are easier to set up and also more likely to get filled.
Another helpful tip is to set up your stop levels at major price levels. Never assume that your stop order has been processed successfully. Instead, be sure to monitor your account until you know that the order you place has gone through. Discipline is a key part of being a successful trader. To thrive as a trader requires a plan and the ability to stick to it. Countless articles have spoken to the importance of having the right attitude and staying disciplined. By using stop orders to cap losses and take profits, you could form one crucial part of a trading strategy.
If you stick to this strategy over the long haul, you could build up some consistency over time. As a trader, you can benefit from reviewing your performance from time to time. One particular aspect you could review is the efficacy of your stop orders. Doing so will help you determine how successful you are at using these orders to meet your investment objectives and whether or not you require any change in strategy. Stop orders can help you minimize losses or lock in gains.
By using these orders, you are basically employing an insurance product that can help you proactively manage risk. Keep in mind that there are different kinds of stop orders, and they come with their own unique costs and benefits.