Take profit and stop loss

There are differences of taking profit and stopping loss between [deviation safety order DCA bot] and [tendency safety order DCA bot],we will introduce separately below.

Deviation safety order DCA

There are two major categories of deviation safety order DCA to take profit:[take profit under trading volume ] and [  take profit under ROI Trailing].

 take profit under trading volume

Deviation safety order DCA-take profit under trading volume 

 

There are two ways of taking profit under trading volume:

  1. % from total volume : The target profit percentage will be calculated based on the total volume of each round of deals, including the base order and all the safety orders. For example: the base order is $10,the volume of three safety orders are $10/$20/$30,the total volume is $70, the target profit percentage is 10%, the target profit is $ 7
  2. % from base order: The target profit percentage will be calculated based on base order, it has nothing to do with the volume of the safety orders. For example: the  base order volume is $100 ,no matter how much the safrty orders are ,the target profit percentage is 10%, the target profit is $ 10

The target profit (%) is set for the profit percentage we expect to obtain in each round of deals.

It is not difficult to see that the "%from base order" method enables a round of deal to end faster with profit due to its' smaller profit target , which helps increase our winning rate and shorten the cycle of holding position. If we want more profit with more safety orders,we should chose [% from total volume].

Tip:

Stop profit order has considered the exchanges' handling costs when calculating the target profit percentage

 

 

Take profit under ROI Trailing

Deviation safety order DCA-take profit under ROI trailing 

Taking profit under RIO traling fllows PNL percentage of the position.This method can ensure that we keep most of the profits when we have a profitability, and avoid the price reversal like the roller coaster🎢 before taking profit.There will be two parameters of taking profit from ROI tralling:

  • Trailing ROI activation (%): activation ROI%. For example, the parameter setting is 10%, which means that when the profit of the position reaches 10%, the trailing starts. If the yield continues to 15%, the trailing ROI% will be updated to 15%
  • Trailing ROI deviation (%): The percentage of ROI% deviation. For example, the parameter is set to 30%, and when ROI% retreats from 15% to 10.5% it will taking profit.

stop loss

deviation safety order DCA-Stop Loss

The way to stop loss of deviation safety order DCA is based on the price,which includes three typies:

  1. % from last safety order:After the last safety order is done,if the price continue to change in the direction of loss over the setted percentage,the stop loss order will be carried out. It should be noted that if all the safety order failed to be carried out for some reasons the last safety order is the base order
  2. % from base order:After the base order is done,if the price continue to change in the direction of loss over the setted percentage,the stop loss order will be carried out
  3. % from avg.open:The average price of open positions can be calculated according to the finished base order and safety orders,if the price continue to change in the direction of loss over the setted percentage,the stop loss order will be carried out

There will be two parameters of each type of stop loss:

  • % Price deviation to stop loss:Set the maximum loss ratio that we can withstand in each round of tradings, and the deviation base is the type we set up
  • Stop loss action:「Close deal」means close this round of trading,the bot will start a new round of trading when meeting the base order condition.「close deal & stop bot」means close the deal and stop the bot, it will not start a new trading unless you start it manually.

The[% from last safety order] can ensure the stop loss order is after all the safety orders.This can help reduce our positioning costs, but it may also lead to a huge loss in a round of trading.[% from base order」and「% from avg.open」cannot ensure all the safety orders be carried out,however, it can control the maximum loss boundary and prevent all profit before losses in a round of trading. 

In addition, it should be noted that the setting of the stop loss condition is closed by default. If the stop loss needs to be set, you need to actively open the stop loss setting.

Tendency safety order DCA

Taking profit and stop loss of tendency safety order DCA will be more special.Generally speaking, it is difficult to trigger the taking profit order, and the stop loss order often end a round of trading with profit. So we will introduce the stop loss first, and then introduce the take profit.There are two categories of stop loss methods for tendendcy safety order DCA: [stop loss under price] and [stop loss under PNL tracking].

Stop loss under price

tendency safety order DCA- stop loss under price 

There are two types of [price stop loss under price]:

  1. % from all order:The average price of open positions can be calculated according to the finished base order and safety orders,if the price continue to change in the direction of loss over the setted percentage,the stop loss order will be carried out
  2. % from previous order:After the previous order is done,if the price continue to change in the direction of loss over the setted percentage,the stop loss order will be carried out

There will be two parameters of each type of stop loss:

  • % Price deviation to stop loss:Set the maximum loss ratio that we can withstand in each round of tradings, and the deviation base is the type we set up
  • Stop loss action:「Close deal」means close this round of trading,the bot will start a new round of trading when meeting the base order condition.「close deal & stop bot」means close the deal and stop the bot, it will not start a new trading unless you start it manually.

Using [% from previous order] method can continuously increase our stop loss price.Even if the stop loss order is carried out, as long as the stop loss price is better than our average opening price, this round of trading will still be profitable.But this method is easier to be triggerred, and it is very likely that we will leave the market in advance and miss the next big market.

Stop loss under PnL trailing

[Stop loss under PnL trailing] fllows the profit and loss of the position. This method can ensure that we retain most of the profits when we profit. It includes three parameters:

  • Trailing PnL activation:Activate to start the PnL.For example, the parameter setting is 100, which means it starts to track when the profit reaches 100. If the profit continues to 150, the trailing PnL will be updated to 150
  • Trailing PnL deviation(%):The percentage of PnL% deviation. For example, the parameter is set to 30%, and when PnL% retreats from 150 to 105 it will taking profit.
  • Stop loss action:Close deal」means close this round of trading,the bot will start a new round of trading when meeting the base order condition.「close deal & stop bot」means close the deal and stop the bot, it will not start a new trading unless you start it manually.

Take profit

tendency safety order DCA-Take profit 

Tendency take profit order will carried out when all the tendency safety order carried out and the price continue to change towards profit.Bull market does not say the top, bear market does not say the bottom.In the actual trading process, we can set up a profit target that is hard to get. This order can be ends by stop loss, by trigger or we manually stop it.

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