How does a Stop Loss and Trailing Stop Loss work?
Trailing stop loss is intended to minimize the loss you would have in trading by 'trailing' or 'following' the price of a coin and determining when to stop based on whether the price has gone up or down.
You can set up the TP and TTP when you are creating a simulation or live strategy
How does it work?
- Let us assume that you bought ETH at 100$ and set a stop loss of 10%.
- This means that when the price reaches 90$ your stop loss will get triggered and trade will be closed.
- However, trailing stop-loss will not be a constant 90, but will continue to change based on how the price has moved.
- If the price rises, the stop-loss value will grow, else it will remain the same. Thus enabling you to minimize losses.
- Below is an example of how stop losses changes with price as price moves