Trailing Stop Loss "follows" the price of a coin. For example:
- You buy 1 ETH for $100 and set Stop Loss of -10%, at $90;
- You check the "Trailing" box;
- We will not deal with the Price follow method in this case and leave it as default choice "Bid", but you can see the available choices here;
- ETH trades at around $100 for a while, but then begins to rise. In this case, the approximate action of Trailing Stop Loss will be as follows:
No. ETH price per 1 unit Trailing Stop Loss value 1. $100 $90 2. $102 (rise) $91.80 3. $105 (rise) $94.50 4. $101 (correction) $94.50 5. $105 (rise) $94.50 6. $108 (rise) $97.20 7. $112 (rise) $100.80 8. $108 (correction) $100.80
For clarity on how TSL works, see this visual example: Thus, the higher the coin price deviates from the initial price, the higher the Trailing Stop Loss will rise. When the price falls, Trailing Stop Loss will not change.
Comments
1 comment
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