Trailing take profit

Overview

This article provides all the descriptions and necessary steps to set up the Trailing take profit.

 

Target Audience

All traders

 

Pre-requisites

• Connected to an exchange
  
• Be connected to a signal pool or strategy

Steps to set up the Trailing take profit

Objective: configure Trailing take profit for signal pools and strategies

Description of automation: Anny's Trailing take profit feature comprises two distinct configurations: Trailing stop loss and Take profit. Let's explore each of these configurations and learn how to use them effectively:

• Trailing stop loss is a strategy that involves adjusting the stop order of a trade as the market price rises. This approach allows you to lock in a profit margin while remaining in the market, potentially maximizing gains during a bullish trend. With Trailing stop loss, the stop-loss price is not fixed at a single, absolute dollar value but is instead set as a certain percentage below the current market price.
  In essence, Trailing stop loss acts as a protective barrier for your profits. It permits you to retain ownership of a cryptocurrency asset while safeguarding your profit margin in case of a price decline, enabling you to continue pursuing higher profits.

• Take profit, on the other hand, involves selling a portion of your balance when a specific target is achieved. This strategy enables you to secure profits by realizing partial gains at various predefined target levels.

How Anny functions:  Anny's Trailing take profit feature works on multi-target signals. As each target is met, Anny will shift the stop-loss order to a higher point to secure profits while you aim for higher target levels. At each target, you also have the option to sell a fraction of your balance.

 

Instructions: from the Dashboard tab, select the Signals or Strategies section from the menu on the left, find the pool and then click on Automation. Select Trailing take profit and configure.

1. Trailing Stop: adjust the stop order of a trade as the market price rises.
2. Take profit: sell a portion of your balance when a specific target is achieved.

Trailing stop

1. Triggering event
   • Specific target or profit percentage
     To know how the percentage trailing works, click here.
     
     
2. Start at target: You can select the target or profit amount from which the trailing stop-loss order should start moving.
   • Choose from Target 1, Target 2, Target 3, or a specific percentage amount.
     
     
3. Interval: Specify the interval at which the trailing stop-loss order should be shifted. For example, if you set the interval to 2 targets, the stop order will be adjusted every 2 targets reached.
   • Choose from Target 1, Target 2, Target 3, or a specific percentage amount.
     
     
4. Distance: Determine the distance between the stop order and the trigger point using targets or a percentage amount. This defines how far below the current price the stop order should be positioned.
   For example: start at target 1, move the stop order every 2 targets, and position the stop order 1 target below the current price. That means Anny will raise the stop order to the entry price when it hits target 1. Nothing will be done when it hits target 2 as the interval is 2 targets.
   You have the following options:
   
   • 1 target below
   • 1.5 targets below
   • 2 targets below
   • 2.5 targets below
   • 3 targets below
   • Percent amount
     
     
5. Margin: Adding a margin between the stop price and the exit price increases the chances of your order executing. The margin you select will be used to calculate the limit price of the stop order.
   For example: * Signal Stop Price: 0.00001234 / Margin: 0.5%
   Stop price = 0.00001234
   Limit price = 0.00001128 (0.5% de 0.00001234)
   

Take profit

Anny provides the option to sell a fraction of your balance at each target met.

1. Basis of calculation: the calculation basis takes into account 2 options:
   • Balance leftover: The remaining balance after selling fractions at previous targets is used to calculate the take profit amount. For example, if the sum of all entries on a given signal resulted in a 100-coin balance and the take profit is configured to sell 50% at each target, at target 1, the take profit amount will be 50 coins (50% of the remaining balance after the initial sale). At target 2, the take profit will be 25 coins (50% of the remaining balance after the first target).
     
   • Total balance: The accumulated balance across all entries on the signal is used to calculate the take profit amount. For example, if the sum of all entries on a given signal resulted in a 100-coin balance and the take profit is configured to sell 50% at each target, at target 1, the take profit amount will be 50 coins (50% of the total balance). At target 2, the take profit will also be 50 coins (50% of the total balance).
     
     
2. Order type
   • Market or Limit
     
     
3. Configuration: You can select the fraction amount for each target, specifying the portion of your balance that you want to sell. This allows you to tailor the fraction size based on your trading strategy and risk management preferences.

Pros and cons of Trailing take profit:

• PRO: you secure some profit by selling part of your balance and stay in the game climbing up the target ladder with the rest of your balance. This strategy is particularly effective when the price starts climbing from the entry range to target 1, there's usually a high probability that the price will drop to the entry range before attempting to climb to target 2. Secures the order execution, ensuring the sale of the desired fraction of the balance.
• CON: you will compromise your profitability, especially if the signal reaches its full potential.

Does Take profit and Trailing take profit work together?

The Trailing take profit technique works in conjunction with the Take profit but this takes precedence over the other.

• Example 1: If you have Trailing take profit on and the Take profit set for target 3, Trailing take profit will be effective on targets 1 and 2, when hitting target 3 the Take profit will execute 100% of your balance.
• Example 2: If you have Trailing take profit on and Take profit set at 5% profit, Trailing take profit will be effective only until the desired profit is reached. When the target profit reaches the Take profit will execute 100% of your balance.

How is the Stop-loss behavior in leveraged trades?

In leveraged trades, the behavior of the stop-loss is influenced by the leverage and the configured loss percentage. Here's an explanation of how the stop-loss works in leveraged trades:

1. Loss Percentage and Price Fluctuation: The configured loss percentage refers to the final loss you are willing to accept and not the necessary fluctuation in the price of the coin. The required swing in price will be the loss percentage divided by the leverage.
   For example, let's consider a 15% loss percentage on a 10x leveraged trade. To allow for the 15% loss, the price needs to fluctuate only 1.5% (15 divided by 10).
   
   
2. • Signal Details:
     • Coin: XRP
     • Quantity: 100 XRP
     • Leverage: 10x
     • Stop Loss Percentage: 2%Minimum Percentage Limit: It's important to note that there is a minimum percentage limit of 0.25% for the stop-loss. If the necessary price fluctuation for the configured loss percentage is below this minimum limit, it will automatically be replaced by a minimum of 0.25%.

       For instance, if the necessary price fluctuation for a trade is only 0.1%, it will be replaced by a minimum of 0.25% to ensure a reasonable level of protection.

       Let's take an example to illustrate this concept:
       
       
       
       In this case, the necessary price fluctuation to trigger the stop loss will be 0.2% (2 divided by 10). However, due to the minimum percentage limit, the actual stop loss level will be ineffective until the price variation reaches 0.25%.
       

Common issues

• The target has been reached but an order to partially sell hasn't been created.
  

  There are some limitations based on the minimum order size accepted by the exchanges.

  When the amount to be split into fractions is too low (i.e., one of the parts is less than the minimum accepted by the exchange), Anny preserves the entire amount and raises the stop instead of splitting the balance.
  For example:
  Suppose you have purchased 0.15 XMR, and you want to sell 50% of it at each target. However, if 50% of 0.15 XMR is less than the minimum accepted amount (e.g., 10 USDT on the Binance Spot account), Anny will preserve the entire amount and raise the stop instead of splitting the balance. This is because it is not possible to execute the transaction with an amount below the minimum accepted by the exchange.
  

Additional resources

• Click here to learn how to manually create a Take profit order through Anny.
• Click here to learn how the percentage trailing works.

YouTube video: Learn how the trailing take profit works and how to set it up