Topic: Kraken stop orders question (Read 114 times)

This is helpful, thank you! I'm going to really try to get all of these order options straight in order to do what I want.

Hello apache20,

For this specific scenario of where you want to sell your BTC when the price reaches 12,200 and buy back at 11,800:
You can setup a Sell Take Profit order (Profit Price = 12,200) with a conditional close of Take Profit (Profit Price = 11,800).
This will ensure that the order to sell at(or above) 12,200 is filled as market order and sold at(or below) 11,800 as market order.

For more information on Take Profit orders: https://support.kraken.com/hc/en-us/articles/203053226-Take-profit-orders

There's another simpler scenario where I may want to use an order like this. Lets say I have .5 Bitcoin I bought a long time ago and plan to be holding for a long while, but the price zipped up really fast and I sell some at 12,200 with the intention of buying back in when it pulls back. After I sell, I'm watching the price continue to bleed out slowly to the downside but I don't plan to be glued to my screen for the next 20 hours and I want to just let it run and kind of see how low I can get it back. So, I want to set a buy order a little higher than what the price is now (say, 11,800) in case it breaks the downtrend and starts to reverse with strength, but still allowing it to have a chance to continue lower. (I'd probably only be thinking about doing this if i'm seeing that it's pretty low volatility and steadily downtrending at the moment and so I'm not super worried about big price whips up and down that would make this order immediately pointless. Also bear in mind that this order would lock in that nice rebuy at 11,800, already a nice boost to my long term position.)

Basically, for this scenario, it's the same idea as setting a take profit order for a true margin short position. I'm just looking for the best way to do this with Kraken order types when you're not actually in a margin short trade but you're just trying to manage and optimize a strategy to re-buy lower when you sell at an overextended high and it's really going down steadily in a low volatility fashion.

The reason I put this forward is because I'd presumably be using the same kind of order for this situation as I would be for the first one I mentioned.

No..so I wouldn't buy everything at 3.05, I'm saying that I'm already in a long term long position in the asset and I want to take advantage of some short term downward movements. This is basically an order I'd put in at the start of a swing fade. So lets say I got in at 2.75 a couple months ago, it shot up to 3.05 and it's showing me signs of a low volatility downtrend that's going to go on for a while. Basically I want to take some profit at this point and re-buy when it retests at say 2.90 after a long grinding bleed out, but I don't want to babysit this thing while it makes slow, low volatility moves down after my sell point.

You mentioned selling and then setting limit buys at a lower price, I do this often for a similar kind of fade strategy and it works well, but only shorter term and w/ higher volatility conditions. I typically do this for little overextensions to the upside and I'm expecting to pick up a little bit and it's choppy or for consolidations in an uptrend. Also these are shorter term trades and I can reasonably watch it and make sure it doesn't go the other way on me.  BUT there are some circumstances where it's the start of a slow but persistent drift downward where I think it makes more strategic sense to basically but a stop loss style re-buy slightly higher than what I sold it for rather than put in a lower limit buy. Part of the reason for this is that I do have to sleep sometimes and I'd rather have a stop loss style order in to rebuy slightly higher rather than hope that it hits my buy orders overnight. (also, these low volatility conditions usually occur at the times that I'm sleeping and sometimes on weekends) But yeah, I have learned the hard way that just setting lower limit buys can miss or partial fill and pop back up and screw me while I'm sleeping or busy and can't do anything about it.

In a nutshell, these are circumstances where I'm taking the position that if there's any kind of upward trend reversal past my sell point then my theory is busted, this isn't the slow bleed I was looking for and I want back in. Again, this isn't something I would use in all circumstances but I often see really long slow fades in the assets that I trade and when these start, there's rarely much reversal to the upside past the strategic failed breakout sell points I would choose.

So what you are worried about is an upward trend reversal?
Why would you buy everything in 3.05 then you sell half of it for the same price? It is a waste of trading fees. I suggest you better buy 50% of the total budget and the remaining 50% you can set a stop limit (buy) at the trigger price of 3.075 and the limit order at 3.08.

If the price continues go down, you can cancel your buy order.

Hello, new here. I have a question regarding using limit orders, specifically with Kraken. What I want to do is sell an asset at a certain price, then set an order to buy it back at a higher price than I sold it, essentially like a stop loss for a short position but without actually entering a margin short.

I think I've been able to set stop loss orders for actual margin short positions by using just a Stop Loss Limit Buy order and it works, but it seems like I'm not doing it in a cost effective way even for that. I also wonder if this is the best way to go about this when I'm not in a margin position but simply want to buy back the asset with cash if it drifts up past a certain point.

Kraken offers regular limit buy and sell orders, Stop Loss and Take Profit orders, and Stop Loss (Stop) and Take Profit (Stop) both buy and sell orders.

To recap what I want to do here: Let's say I'm long a couple hundred XTZ and the price is at say 3.05. I think it's going to continue to drift downward short term so I sell half my holdings at 3.05 with hopes to buy it back later at a lower price. However, I don't want to risk missing out if there's an upward trend reversal. Therefore, I want to put in an order to buy back the XTZ I sold at say, 3.08 to 3.10. Would I use a Stop Loss (Stop) Limit order for this?

Note that I'm only going to do this when the market is exhibiting certain low volatility drift tendencies and with other technical signals. I do recognize that this isn't the best strategy to use in many situations. Also, I don't trade XTZ and the price targets are just for the sake of example.

I hope this makes sense and thanks for any advice in advance.. I don't know where else to turn for this question!