Dear friends, this is the second article of “3Сcommas Practical Guides” – a series of mini-articles with examples of how to make profits with the wide functionality of 3Commas.io platform. In this article, we will take a look at how to increase your earnings with a Trailing Take Profit order.
Trailing Take Profit
We’ve all faced situations when the price went much higher than our Take Profit was set. As a result, we watched the rocket take off, leaving us behind. In order to not miss potential gains, you can use the Trailing Take Profit feature in 3commas.io from the Smart Trade menu section.
Trailing Take Profit is a special type of order that does not close at a specific price but is activated when the Take Profit level is reached, it then follows the price as it rises and then closes the trade if the chart price reverse by an amount you specify.
Setting a Take Profit order
Select an exchange account to use, you can always familiarize yourself with the functionality using Paper Trading first:
You can calculate the entry point, stop loss, and Take Profit levels on the chart in the Smart Trade menu section. Let’s say your research tells you that the price of Bitcoin will go up, so you acquire a position of 0.5 BTC at $9233, expecting the price to rise to $9313. At the same time, you believe that an impulse may carry the price up by 200-300 points.
In this case, when creating a buy order, you should enable the Trailing Take Profit feature, where you set up both the price to activate trailing, the deviation percentage, and the stop loss:
When the Take Profit level is reached, trailing activates and follows underneath the current chart price by the deviation percentage you specified. If price reverses, and falls to the same price that the trailing deviation is at, then the trade is closed in profit. Trading cryptocurrencies like Bitcoin it is not unusual to see large price growth in a single candle, and this is where trailing take profit really shines!
When choosing strategies, it is vital to independently and carefully calculate the entry point, based on your risk management and financial capabilities.
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.
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