The Trailing Take Profit or TTP, in short, is a feature that designed to help you catch the rise.
Here you can read the detailed description.
You set your Take Profit target on which trailing will activate and try to increase your profits as much as possible. The drawback that you can lose a part of the gain if the price does a reversal and go down just after trailing activation.
You should not use the trailing for all trades, check where not to use the trailing.
- The pair has a volume below 1 BTC;
- The pair has very low liquidity, and one trade could change the price much;
- The pair has too high spread, the difference between the buy and sell prices in the order book;
- You want to catch the big buy, where one purchase may drive the price up to +10% and higher, but seconds later the price backs to normal levels;
- You want to sell at an exact level, and not below your target;
- You expect a pump for the coin, where the price may rise much in one minute and go back the minute later.
Better to use limit orders in all these cases.
Available for both SmartSell and SmartTrade
Check the box on the bottom of "Set Take Profit" part to enable it.
The feature has only one setting called "deviation" which you can change in the same part.
Let's check TP settings on the image above.
The overall target is +10% or 237.63 USDT. We have the trailing feature enabled there with -2% maximum deviation. What will the system do with these settings? When the price reaches 237.63 USDT or +10%, it will activate the trailing. From this point, it will follow the price until it starts dropping. You would ask but how it can determine when the price reverses and goes back down? That's where the deviation matters. The system will sell coins when the price drops from the latest high more than deviation percent.
In our sample trade, moment after trailing activation, the system will consider +8% as the selling point. Because the highest price point at that moment is +10% and the deviation is -2%, +10%-2%=+8%. All new price highs after trailing activation are essential. Each time the coin rises higher than the latest time the selling point will increase too. The critical part that when the price drops, it doesn't affect the selling point.
- Price increases 4% higher to +14% and the selling point rises for +4% too, now it is at +12%;
- Price drops 1% back to +13%, and nothing happens;
- Price increases all the way up to +20% and the selling point following it up to +18%;
- Price drops back to +15%, and the system did close the trade when price crossed down +18% mark.
Check this GIF and the article for better understanding.
The deviation thing and why do not play with it much
The deviation percent is the most critical setting for TTP. Treat is as how much profit you could lose safely. In a market, the price can easily touch your TP level and go back down, in that case, the deviation is how much your profit would be lower. When you set TTP +10% with deviation -2%, be ready to get only +8% profits. Remember these four rules on how to calculate the deviation to be successful with the trailing feature.
- The main rule here is to set it relative to the Take Profit target percent;
- Don't set it to the same value as TP target as you would end with zero profit;
- Don't set it to more than the fourth part of your TP target;
- Don't use trailing at all for coins with very low liquidity and high spread.
Here are some examples of good setting pairs.
- TP +5%, deviation -1%;
- TP +8%, deviation -1.5%;
- TP +10%, deviation -2%;
- TP +15%, deviation -3%;
And setting examples you should never use.
- TP +5%, deviation -5%;
- TP +5%, deviation -4%;
- TP +10%, deviation -5%;
- TP +15%, deviation -20%;
You may omit these rules when you feel that you know what you are doing and ready to risk.