This order type allows its traders to set a Trigger Delta which is how much the price of crypto asset could fall before you place a sell or rise before placing a buy order. You can specify trigger delta as a percentage or amount. Once after setting the trigger delta Crypto, TrailingCrypto continuously recalculates the price which will trigger your order, based on the current market price of the asset as it moves in the favorable direction. If the market price changes directions, your trigger price won’t change. Whenever your order is triggered, the buying or selling of the crypto asset will be a limit order. You will determine the limit price by specifying how far from the trigger price, you will allow the buying or selling of the asset. This is called Limit Offset.
A trailing limit sell order moves with the market price, and continuously recalculates the trigger price at a fixed amount below the market price, based on the user-defined trailing amount. The limit order price is calculated based on the limit offset. As the price increases, both limit price and stop price increase by the trail amount and limit offset. But if the price falls down, the stop price will remain unchanged. So, Trailing limit sell order is one of the best crypto trading tools where the limit sell order trails the market price of the cryptocurrency pair. Let’s understand it with an example:
Suppose a trader places a trailing limit sell order for XBT/USDT. Then, the trader sets the trailing gap or trigger delta as 10%. Therefore, the limit sell order will always be 10% away from the market price of XBT/USDT. If the pair moves from 9, 500 to 9, 400, the trailing amount recalibrates. This order type is an exact mirror image of the trailing stop limit sell order. It can be used to protect profits generated through short selling or while you are trying to buy any stock which is bouncing off due to market low.
Before jumping into the market, make sure you have an exit strategy. This way, you can maximize profit and minimize loss with one move. TrailingCrypto is a crypto trading terminal that automates the trading strategy of traders, and lets them earn profits with the current market trends by making use of the right strategy at the right time.
Traders no longer have to spend hours glued to the screen studying chart patterns, all in the effort of identifying trading opportunities thanks to advancement in technology. Automated crypto trading is the latest sensation that is allowing traders to invest in the burgeoning sector with little or no work.
Automated trading systems have found their way into the burgeoning crypto space allowing traders to set rules for entry and exit when dealing various digital currencies. Such systems leverage advanced technologies for analyzing the market and studying chart patterns. Once a given set up marches set rules for entry, an automated system would open a position, be it long or short. The system also closes positions allowing traders to lock in profits or avert losses as soon as set conditions are met.
The entry and exit rules leveraged by an automated trading system are based on simple conditions such as Moving Average crossover. Likewise, there are systems that leverage momentum moving indicators to enter and exit trades based on oversold overbought market conditions.
Automated crypto trading systems are becoming a common phenomenon in the cryptocurrency space as investors explore ways of making good use of the extreme levels of volatility in the space. Trading bots are at the heart of automated trading in the space as traders look to gain an edge when it comes to price action.
3commas, TrailingCrypto Cryptohopper are just but a few trading bots that are taking automated trading to another level in the space. The bots not only generate dealing signals but also execute the orders and exit trades, allowing traders to lock in profits without doing much. A good automated trading system is one that is able to scan the entire cryptocurrency market in pursuit of dealing opportunities. Likewise, the system should be able to execute the orders in real-time and lock in optimum profits. Similarly, it should have countermeasures for mitigating against losses that might come into play in the process.
One of the biggest advantages of automated trading systems in cryptocurrencies is that they are proving to be helpful in making decisions related to dealing. The systems avert the risk of making emotion-driven decisions. Instead, entry and exit points are triggered based on a predefined set of rules.
Automated trading systems also avert the need to spend hours on the screen in pursuit of dealing opportunities in the cryptocurrency market. Instead, such dealing assistants are able to scan the market 24/7, identify opportunities, and execute them, thus allowing traders to lock in profits. Similarly, automated crypto trading systems enhance the execution of entry and exit points, allowing traders to lock in optimum profits. Computers tend to respond instantaneously to changing market conditions. Getting in and out of trades a few seconds makes a big difference in the highly volatile cryptocurrency market.