Automate Your Trading Strategies by Making Use of Conditional Orders

Determining the right risk management plan is the most important part of any trading strategy. It’s better to have a firm idea of where you should plan exiting a trade before entering any trade. There are many different kinds of order types and advanced tools offered by the best crypto trading platforms which traders can use to trade smartly. These order types allow traders to earn potential profits while minimizing risks.

Do you know how professional traders ride the big market trends? Have you ever wondered what kind of trading strategy is used by them to earn potential profits? Well! There are many different kinds of trading strategies used by expert traders which keeps them going higher. And, the most popular one is making use of trailing stop orders. Implementing trailing stops in the trading strategy is the best way to ensure that you have a robust and agile trading plan.

The best crypto trading platforms, like TrailingCrypto offers the best and automated trading strategies to help traders get profitable results on their trades. These trading strategies help traders to earn consistent profits without monitoring the system continuously. Performing trades via crypto trading bots is also a better option if you don’t have time to watch market trends or you don’t want to hold your assets for long.

Depending on your trading strategy, the trades can be executed based on technical indicators, asset price, etc. TrailingCrypto supports trades for all the major exchanges like Binance, KuCoin, etc. From accumulation to the long-term holdings of the assets and choosing orders from Trailing stops to Trailing stop sell, etc., the platform offers new templates to the trades to perform profitable trades on different exchanges.

One such trading strategy used by crypto traders on this platform is making use of Trailing stop orders.

Trailing Stop

These orders are preferred over other orders like stop limit orders as they provide protection against fast market swings. Cut your losses and lets you win, making use of trailing stops for sell orders is quite beneficial. A trailing stop works very smartly. Let’s say there is an asset trading at $100 and the trader sets a trailing stop at 25% which means if the asset price falls to $75, the asset will be sold.

Simple enough! But there’s more! How?

Let’s say the asset price is increased to $200 and the trailing stop will trail along it. So, if the asset price hits $125, $150, or $175, the trailing stop will be increased to $ 93.75, $112.50, and $131.25 respectively. And, when the asset price reaches $200, the trailing stop value will move to $150.

So, this helped traders to reduce their downside risks. And, if the stock price reaches $150, the asset will be sold. Trailing conditional orders allow traders to set a percentage or the price movement trigger from the higher or lower point after the trail start price has been met. This helps traders to maximize their gains by tracking the market movements automatically.

Traders can use these orders for placing buy or sell orders.

The advanced techniques used in trailing stop orders for sell orders are:

· Trailing stop sell

· Trailing limit sell

Let’s understand these orders one by one:

Trailing Stop Sell

The Trailing stop sell order sets the initial stop price at a fixed distance/percentage below the market price defined as the trailing amount. As the market price rises, the stop sell price will also increase but always at the set interval. On the other side, if the price of asset falls, the stop price will remain unchanged. When the stop price is a hit, the market order is submitted. This is one of the most popular strategies used by traders to limit the maximum possible loss without limiting the gains.

So, trailing sell stop order allows the traders to set a fixed stop price for the orders below the current market price as per the trailing amount/percentage. In this order type, the stop price increases concurrently with an increase in the market price, and it is always increasing with the initial interval set by the percentage of the trailing amount. Once the stop price is attained, it will trigger the order automatically. This is a risk management tool which can be used by the traders to specify the conditions that will trigger an order automatically to sell the position.

Let’s understand this order with an example:

If you are buying an asset, say XYZ at $200 per coin. The price of the coin increases to $220. Now you would place a trailing stop sell order with a trailing stop price of $10 below the market price. As soon as the price moves in your favor, the trailing stop price will remain $10 below the market price. If the price of XYZ reaches $240, and then drops to some extent, your trailing stop price will remain at $230 here. And, XYZ will be sold at $230 while the execution price may deviate. So, in this trade, you have earned a profit of $30 per XYZ.

For a long trade, the trailing sell stop order is placed above the trade entry.

Placing Trailing Stop Sell Order

• Here you have to select Trailing Stop Sell order type
• Now, select Base and Quote coin. Say, Market: BTC/LTC
• Select the number of coins which you want to sell. You can also select the percentage option to specify relative coin volume. E.g. 10coins (Quantity could be in the fraction) or 10% of quote coin.
• Enter the quote coin price at which you bought. If it is left blank, the current market bid price will be used. E.g. 0.01123 BTC
• The offset is actually the fixed percentage value below the market price. Using this, a stop loss order is placed with an offset of x% from the peak market. If the market will go up, stop loss value will go up. If the market comes down stop loss will not change. E.g. Offset = 5%

Trailing Limit Sell

This is a popular order type where the traders use to protect themselves from losing money while maximizing profits. Trailing limit sell order is quite different from trailing stop order in a way that stop orders are converted to market orders immediately whenever the asset price reaches the stop price. For a limit order, the order converts to the market order at the set price or even at a better price.

In trailing limit sell order, the limit sell order trails the market price of the cryptocurrency pair. The trailing limit sell order combines the stop order with a limit order. It sets both the stop price as well as limit price, allowing traders to limit their losses while maintaining control over the sell price.

Example:

Let’s say, a trader places a trailing limit sell order for BTC/USDT. Then, the trader sets the trailing gap as 10%. Therefore, the limit sell order will always be 10% away from the market price of BTC/USDT. If the pair moves from 10,000 to 9,850, the trailing amount recalibrates. This way, the distance between the market price of the pair and the limit sell order remains 10%. If the pair increases in value, however, the limit sell price does not go down.

How Trailing Limit Sell Order Works?

TrailingCrypto allows its traders to place trailing limit sell orders easily. Here you can easily access all the major exchanges with just one account by making use of APIs. This order also works in a similar way to a trailing stop sell order. Let’s understand how:

1. Firstly, login to TrailingCrypto and choose an exchange like Binance, Kucoin, Bittrex, etc.

2. From the orders section, choose Trailing limit sell.

3. Once after specifying the order type, enter the required parameters like choosing the market BTC/USD, quantity, offset value, and more.

4. Now, submit your order.

Trailing limit sell order helps traders to make the most of the bearish market trends. The target price should be above the market price. As the price of the asset moves down, the target price will also trail downwards. The recalibration continues until when the market price of the asset begins to rise. And, then the order will be converted to the market order once it reaches the target price.

Trailing stop orders are the best risk management tools which can help traders maximize their earnings while reducing the risk of significant losses. Make sure to choose the right trading platform and trading bots to place trades smartly. The best trading platforms also offer trading signals to the traders which help in reducing the pain of analyzing the market trends.