Trailing Stop Losses and Trailing Take Profits are useful features when we want to trade cryptos effectively. The next generation of BCUBE bots, also known as TSL models use these orders to exit the market. In this article, we explain how these orders work and how the models performed so far. Keep reading!
A trailing stop is a type of stop-loss order that adjusts automatically as the price of an asset moves in favor of the investor. As the name implies, it trails the price by a certain distance, typically a percentage or absolute value. For long positions, a trailing stop loss order is placed below the market price, and for short positions, it is placed above the market price. Once the stop price is reached, the order becomes a market order.
Trailing stop losses are designed to protect profits by selling an asset automatically at predetermined prices when its price falls below that level, while still allowing it to continue to rise if its price continues to go up.
The trailing take profit orders work in a similar way, but they are used to lock in profits rather than limit losses. As with a trailing stop loss, a trailing take profit order automatically adjusts according to how the market moves. However, instead of being placed below the market price for long positions or above the market price for short positions, it is instead placed at a fixed distance from the current market price. When the market price reaches this level, the order is executed and your position is closed.
How do TSL orders work practically?
A trailing stop closes a position when it reaches a price lower than its current market price. A trailing stop is designed to limit a trader’s loss on a crypto position. For example, if a trader opens a futures long on BitcoinUSDT for $100 worth and sets a trailing stop of 10%, the stop order will become a market order to close the position if it falls to $90. The trailing stop percentage is set by the trader and can be adjusted up or down as the coin’s price fluctuates.
Trailing stops can also be used to protect against losses in a downtrending market. For example, if an investor opened a long at $100 and it fell to $95, they could set a trailing stop of 5% to limit their loss. If the coin continued to fall and reached $90, the trailing stop would trigger a sale at the current market price.
How do BCUBE TSL models perform?
As you can see, on our marketplace the LTC TSL models are leading the table for the last few weeks now in terms of performance.
The Scalp models have been launched on May 16th, which means in the 1-month performance, some data is included when they were not available. However, their results look impressive so to speak.
Can these bots even lose?
While it is possible to make a lot of money through trading bots, it is also important to be aware of the risks involved. Even the most promising bot can lose money in a down market, and negative months are not uncommon. This is why it is important to have a clear understanding of how the business works before investing any money. While bots can provide a high degree of automation, they are not perfect, and losses can and do occur. As such, it is important to be mindful of the risks involved and to only invest money that you can afford to lose.
Thank you for reading this article. We will keep writing new content to help you better navigate on the b-cube.ai platform and in the crypto world in general.
The BCUBE Team
Trading cryptocurrencies involves risk. The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the article’s content as such. The author, website or the company associated with them does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.