3Commas practical guides: how to always close a trade with profit
In this “3Commas Practical Guides” article, we will explain how the 3commas.io tools can help you profit from your trades even if you were knocked out by a Stop Loss.
Trailing Stop Loss
How many times have we encountered a situation when after buying an asset, the price went in the right direction, but after a while, our position was knocked out by a Stop Loss, leaving us profitless? The Trailing Stop Loss feature of the 3commas.io service allows you to automatically move a Stop Loss in tandem with the price in order to profitably close the trade in case of a price retracement.
Let’s say, you enter a position, and set a Stop Loss at -5% of the entry price, if the asset price rises by 20%, your Stop Loss will automatically move to the + 15% level of the entry point and close at this level in case of a rollback.
Setting up
Select an exchange, market, and a trading pair in the Smart Trade section of the side menu. The chart allows you to perform analysis and do all the necessary calculations to enter a trade. You can always try the functionality first with a Paper Trading account:
The Trailing Stop Loss function is available in any of the smart tabs of the section. To start a trade, select the entry conditions, Take Profit and Stop Loss, based on your analysis and risk management. For example, we believe that the price of BTC will go up by more than 5% and decided to buy 0.1 BTC, with a stop at -1.84%:
After activating the Trailing Stop Loss function and when the price rises by more than 1.84%, our Stop Loss will move up following the price and increase the likelihood of bringing profit. If we activate the Stop Loss timeout function, then our Stop Loss will not be triggered instantly, but only after the specified time if the price breaks the stop level. This feature is very useful in case of instant squeezes, which are often used by market makers to trigger stop losses.
After checking all the trade settings, all we have to do is create it, confirm and monitor the result. The rest of the work will be done automatically by 3commas.io.
Good luck, everyone! See you in the next 3Сommas Practical Guides!
The information above contains information on the cryptocurrency market, which is associated with high risks. These materials are presented for informational purposes only and in no way should be construed as a recommendation for the purchase or sale of the assets. Any person considering trading digital assets should seek independent advice on the suitability of any particular digital asset.
