Hi guys, I am Asya and we will continue to talk about our available trading tools. Today, let's look at the Step Sell function that allows you to protect gains in an uptrend volatile market.
Laddering sell orders can ensure you take profits as the price goes up, without having to time the top.
Laddering (incrementally moving in and out of positions) is a risk management technique used by experienced traders. Instead of buying or selling at a single price, one would set incremental buy/sell limit orders up and down the order book, buying when the price goes down and selling when the price goes up.
Let's suppose that you have a large volume of LTС, and when the price starts to rise, you need to choose the perfect moment to sell it with max profit and minimal risk. In this post I'll show you how to use Step Sell in Smart Trade. Imagine that you have a cake consisting of 10 000 LTС; you can sell all at once or ladder your sells in several increments as the top of the rise is difficult to determine.
Experienced traders usually ladder their orders in 3 or 4 increments or Steps. For each Step you need to set the volume, price, and order type. You can use the Trailing feature for the last target. The point will be the same as in the case of Trailing Take Profit. You set the price for each item:
How to implement on 3Commas:
1.Go to the Smart Trade page – select the trading pair and then set Take Profit.
2.Click on Split Targets.
3.Choose what type of sell order you wish to apply. In the image below Bid is selected) but in fact you can choose Bid, Last or Ask. This is important so please read more about Price Type here.
4.Enter the price for the first step. This can be done with a slider in percentage points or by directly typing the actual value.
5.Set a volume for the first step.
6.To create a second step, click Add TP target.
7.Set the values for the following steps on the same principle.
Now you can see the diagram that displays the volume used in each step, in different colors. The chart also shows you how many coins remain available for the next Step Sell on the right side.
Practice and share your opinion with us and fellow traders. I wish you all the best!
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Asya from 3Commas.