How Advanced Orders Like Trailing Stop Orders and Take Profit Ensure Optimum Profits?

by Trailing Crypto cryptocurrency experts

We all are aware of the volatility of the crypto trading market and having access to the right tools can help traders to make informed decisions, and thus, maximize their earnings. The best crypto trading platforms, like TrailingCrypto help traders optimize their trading strategies and succeed.  A plethora of tools and features are available on the best trading platforms, helping traders to implement and improve their trading strategies.

Every trader must understand that the secret to surviving in the crypto trading market is about knowing the right risk management techniques and tools. Trading discipline is something that sets great traders apart from good ones. Being a disciplined trader is quite hard, but following the right strategy can help them trade like winning a war. The most popular crypto trading orders used by traders are market order, limit order, stop-loss, take profit, trailing stops, etc.  And, trailing stop buy and stop sell are the most used orders followed by expert traders in their crypto trading strategies.  Trailing stop orders are regarded as the best crypto trading tools allow traders to earn good profits.

Trailing stops

Stop loss orders are a kind of protective measure used to limit the trader’s capital, and thus, setting up a predetermined amount of maximum losses can be incurred. However, stop-loss orders are only useful if the market moves in the undesired direction, and here is when trailing stops are helpful.  Trailing stop orders protect the profits of traders as these can be set a predefined percentage away from the current market price.

Trailing-stop order allows the traders to protect the position from losses and ensure profit, as well as gain extra profit if it’s used as a dynamic Take Profit. Whenever you are placing Trailing-stop, you have to set a level at which you are ready to suffer losses (Stop-loss) or fix profit (Take-profit).

Suppose the asset’s price moves against the position and reaches the pre-set level. In that case, the order is automatically executed, and the position is closed with minimum loss. However, unlike traditional Stop-loss, the Trailing order follows the price and if it increases, let’s say by 10%, the crypto trading platform will move the stop-loss level by the same 10%. The same works with Take-profit. If an asset’s price keeps increasing, the trading platform will move the take profit level higher and you will earn an extra profit.

TrailingCrypto allows its traders to place this order easily so as to buy or sell positions to protect profits. The trailing stop order only moves if the price moves in afavorable direction. This order only moves in one direction as they are designed smartly to lock in profits while limiting losses. If a 10% trailing stop loss is added to a long position, a sell trade will be executed if the price drops 10% from its peak price after purchase. This order only moves up once a new peak has been achieved due to market price movement. Once the trailing stop has moved up, it cannot move back down.

How it works

Utilizing a trailing stop buy strategy allows traders to trigger an order whenever the market turns around from its low, increasing your odds to buy an asset at a profitable price. Let’s understand it with an example:

Suppose you have 12,000 USDT in your account and you would like to buy any token say ABC at the best possible price. Knowing that the current price of 1 BTC is 10,000 USDT, you are placing a Trailing stop Buy order at a 10% Price Difference. 

In this particular example of a Trailing buy order, when the price of asset ABC decreases to X USDT, the Buy price will be recalculated at (X + 10)%. However, if the price for ABC moves up, the Buy Price will remain at its latest value (X + 10%). The order will be fulfilled when the latest buying price matches the current ABC price.

Another order that is used by traders whenever the price moves in favorable direction is Trailing take profit. Let’s understand about this order:

Trailing Take Profit

Traders can take advantage of Trailing Take Profit (TTP) orders on TrailingCryptoto get the most from their investments. Actually, this is a kind of take profit order that is converted to a trailing order once the trigger price is reached. This order allows the trade to remain open and continue to earn profits as long as the price is moving in a favorable direction.

And, in case the price changes direction and this change surpass the previously set percentage, this order will be converted as a market order. The traders can use this order for both buy and sell orders. TTP is quite similar to trailing stops and is used mostly in crypto trading by expert traders. Trailing take profit order moves in one direction only and is designed to lock in profits, while reducing/limiting the losses.

Understanding current market trends and the technical indicators used in the crypto trading market can help you make trading and investing decisions in crypto assets. There are numerous patterns and indications that you should investigate before placing any kind of trade. Want to know more? Register yourself at the best crypto trading platform like TrailingCrypto and get to know everything about crypto, trading bots, trading strategies, and more.

Summary

In crypto trading with standard orders, traders can either limit their losses or lock in the profits, but making use of advanced orders like trailing stop orders helps traders to achieve both within a single order. Making use of trailing stop buy and trailing take profit orders allow you to understand about the trading risks and lets you explore your exit strategy profitably. 

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Created on Apr 26th 2023 00:03. Viewed 169 times.

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