Ride the Current Market Trends with Trailing Stop Sell Orders

Ride the Current Market Trends with Trailing Stop Sell Orders Are you new to crypto trading? Wondered, how professional traders ride the big market trends?

Doesn’t it trouble you when you come back after a long day at the office, and find that you have missed the opportunity to buy or sell any crypto asset?

Well, it messed up many of us! Isn’t it?

So, want to know about that strategy which makes experts earn good profits? Well, the secret to profitable crypto trading is making use of Trailing stop orders. Using stops, stop buy, stop sell, or Trailing stop sell, Trailing sell, etc. in crypto trading is the best way to preserve capital gains.

Are these features sound complicated to you? If yes, then you need not worry as these features are not as complicated as they seem. Implementing a trailing stop strategy ensures that you are following a robust and agile trading method.

The best crypto trading platform and exchanges support automated crypto trading to let traders earn consistent profits without monitoring the market. If you don’t have the time to trade cryptocurrencies and don’t want to hold them for long, considering automated cryptocurrency is the best option. Trading bots are the best example of automated trading. For example, Binance trading bot allows its traders to place trades automatically on the Binance exchange.

By incorporating a trailing stop in your trading strategy, you can capture capital gains that develop with an ongoing trend.

What is a trailing stop?

Trailing stop is actually a risk-management technique where the stop-loss level of the trader trails the current market trends by a specific value or percentage. Instead of using a fixed stop price, the trailing stop trails an asset price and it may increase or decrease as per the market trends.

One can use a trailing stop buy or trailing stop sell order which is determined by if you are long or short a position. If the crypto asset’s price moves in a favorable direction, the trailing stop price will move or increase with the asset. And if the price moves in an unfavorable direction, the trailing stop price will remain the same. If the asset’s price reaches the predetermined trailing stop price, a market order will be triggered. And, this order will be executed at the best currently available price on the market.

A trailing stop sell order will be executed for a long trade.

In this order type, the trailing stop price moves up by a predefined trailing percentage.

Here a new stop price will be formed when the price moves up.

When the price of the asset moves down, the trailing stop value will also stop moving.

And, a sell order will be issued if the price moves more than the predetermined price from its peak price and reaches the trailing stop price. The trade will be closed with the sell order.

Therefore, Trailing Stop Sell order sets the initial stop price at a fixed percentage below the market price as defined by the Trailing Amount. As the market price rises, the sell stop price rises one-to-one with the market but always at the interval set initially by the trailing percentage amount.

If the stock price falls, the stop price remains the same. When the stop price is hit, a market order is triggered. And, the buy order is just the opposite of a Trailing stop sell order. For a short trade, a trailing stop buy order is placed below the trade entry.

Let’s understand this with an example: Say, you own any asset ABC, and you think it will rise in value, but want to protect yourself in case it falls.

If you set your trail to 5%, your stop price will remain 5% below the ABC price.

Say ABC is currently trading at $100. Here, your stop price will start at $95, which is 5% less than the current price.

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If ABC stays between $100 and $95, the stop price will be $95.

If ABC rises to $110, the stop price will be updated to $104.50, 5% below the new highest price.

If ABC falls to the stop price of $95 or lower, the bot will trigger a market sell order.

So, your ABC will be sold at the best price available.

Another example: Let’s assume, you buy an XYZ stock at $200 per share. The price for the share rises to $220. And, you 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, your trailing stop price will stay at $10 below the market price.

If the price of XYZ reaches up at $240 and then starts to drop. Your trailing stop price will now remain at $230. And, the shares will be sold at $230, though the execution price may deviate. So, here you have earned a profit of $30 per share.

You can easily place Trailing Stop sell orders on Binance and other third-party exchanges. Here you need to set the market order. If you are going long, using Trailing stop sell Binance will let you close the trade with a profit. The third-party exchanges like TrailingCrypto connect their traders to Binance and other exchange platforms by making use of API. Using Binance trading bots makes the process easier and straightforward. The thirdparty exchanges provide the right tools to traders which they need to place trailing stops and related orders. These platforms also provide signals and considering trading with signals will let you place profitable trades.