Auto stop tutorial
Auto Stop is a valuable feature offered by Anny that automatically creates a stop loss order to protect your investments. It acts as a risk mitigation tool by settling your position once it falls below the stop threshold you set. Let's explore how to use Auto Stop effectively:
When to use Auto Stop:
Auto Stop is particularly useful when you want to safeguard your investments against significant losses. It is recommended to use Auto Stop in combination with Auto Invest to ensure that your assets are protected automatically.
How Auto Stop works:
Auto Stop will be triggered as soon as the Auto Invest order executes. It automatically creates a stop-loss order to limit potential losses.
Anny will not place a stop-loss order if the signal you receive does not contain specific stop-loss instructions.
Setting up Auto Stop:
To configure Auto Stop, follow these steps:
- Access Anny's platform and navigate to the Dashboard tab.
- Select "Signal groups/ Strategies" and locate the Signal provider group you want to automate.
- Click on "Automation" and choose the Auto Stop option.
- Configure your Auto Stop settings based on your preferences.
- Stop-limit margin
For safety, Anny will automatically place a STOP MARKET order whenever this type of order is available on the exchange. For example, on Binance/SPOT, STOP MARKET is not available, but on Binance/FUTURES, it is.
- You can add a margin between the stop price and the exit price to increase the likelihood of order execution.
- Your selected margin will be used to calculate the limit price of the stop order. For example:
The signal stop price is 0.00001234 and you set a margin of 0.5%, the stop price remains at 0.00001234, while the limit price is calculated as 0.00001228 (0.5% below the stop price).
- Order Trigger
With the current volatility in the markets and ongoing battles between retail and institutions stop hunting became a hot topic. To fight against stop hunting the Anny offers two options to trigger the stop loss order:
- On order booking: In this option, a regular stop order is placed over your balance as soon as the Auto Invest order is executed.
- On candle close: With this option, a liquidation market order is triggered once the close price of the candle is equal to or below the stop level indicated by the signal.
Important: please ensure you understand the applicability of this feature to your portfolio. It is not recommended to apply it to assets that are highly prone to dumps.
- Cap Loss (for external signals)
When receiving signals from third-party providers, you have two options:
- Take from the signal: This option uses the stop price indicated in the signal. It prevents premature exits of the signal. If the signal provider doesn't send a stop-loss entry, Anny will not add the stop-loss.
- Capped percentage over the entry order: With this option, you can define a maximum loss by specifying a relative percentage of your entry order. Anny will consider the signal stop-loss only if the loss is lower than your configured percentage.
If you use Auto stop capping with leverage trading, be aware that the stop order can only be placed at a price of -0.25% of the market price.
How is the Stop-loss behavior in leveraged trades?
- 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).
- 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:
- Signal Details:
- Coin: XRP
- Quantity: 100 XRP
- Leverage: 10x
- Stop Loss Percentage: 2%
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%.
- Signal Details: