Trailing stop loss - yay or nay? - page 2.

philipma1957

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Quote from: pawel7777 on November 14, 2024, 09:42:18 AM

Quote from: Oshosondy on November 13, 2024, 04:48:00 PM

People on this board will prefer to discuss about holding bitcoin. A post like this will better be in trading discussion.

Good point. I completely forgot we have "Trading Discussion" board. I moved it here.

Quote from: Oshosondy on November 13, 2024, 04:48:00 PM

(...) Holders will prefer to have their coins on a noncustodial wallet where there is nothing like stop loss, take profit or trading stop. If they want to exchange, they will move their coins to exchange and convert it using market order after they have made profit already.

I understand this sentiment and that was my strategy for many years. But I had regrets after the last bullrun of not taking advantage of it, selling high and buying back more at a lower price, maximising my holdings. After the 2021 pump, we now have more data and know that the price was acting in a similar way than in the previous cycles, so, based on that, it should be easier to know what to expect this time.
But yeah, if someone is not comfortable in trying to time the market, holding is a good idea.

I do not like auto trading

lets say I have 1 btc acquired at 22k

and at 66k

I decide to do a sell ladder

0.01 btc at 72k
0.01 btc at 75k
0.01 btc at 78k
0.01 btc at 81k
0.01 btc at 84k

now that I sold 0.05btc

I set buys at
51k
48k
42k

a rest and a higher ladder
0.01btc at 89k
0.01btc at 92k
0.01btc at 95k
0.01btc at 98k
0.01btc at 101k

so if you look above you sold 0.07 coin and still have .93 coin

with 3 sales set

plus you have buys at 3 low levels

if we continue up you end up with .9 coins

and you may or may not set a higher sell ladder

say
111k
115k
119k
123k
127k

I prefer what's above than your auto set

Aanuoluwatofunmi

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Quote from: pawel7777 on November 13, 2024, 04:15:50 PM

Quote

A trailing stop loss is an order that automatically adjusts to lock in profits as an asset's price moves in your favor. It sets a stop price that follows the market by a set amount, and if the price reverses by that amount, the order is triggered to sell or buy, limiting losses.

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits? You will never hit the exact top with this strategy but you are unlikely to hit it anyway. The convenience of it and not having to worry about the price all the time sounds pretty appealing to me.

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

The use of any of the trading strategies for now is on a very high risk, because the crypto market is highly volatile with bitcoin making new highs almost each day, many assets are getting liquidated except by the use of stop loss on either of the order placed on trade, though i still buy the idea that we should put a limit to the rate at which we are going to lose from a trade by using a trailing stop loss function, which is also another strategy on it own to help us control the rate at which we lose while on making trades.

bettercrypto

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Quote from: pawel7777 on November 13, 2024, 04:15:50 PM

Quote

A trailing stop loss is an order that automatically adjusts to lock in profits as an asset's price moves in your favor. It sets a stop price that follows the market by a set amount, and if the price reverses by that amount, the order is triggered to sell or buy, limiting losses.

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits? You will never hit the exact top with this strategy but you are unlikely to hit it anyway. The convenience of it and not having to worry about the price all the time sounds pretty appealing to me.

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

Trailing stop is one of the good ways that even if you sleep or go beyond the Tp you set and it continues to increase or decrease in price, it will also eat all the possibilities that you can get profit from.

Often if you use those tools, instead of the one where you just set the Tp, the Tp you can get is up to that point, unlike if you have a trailing stop set up, you can convert everything at least 5%-10%.

pawel7777

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Quote from: Oshosondy on November 13, 2024, 04:48:00 PM

People on this board will prefer to discuss about holding bitcoin. A post like this will better be in trading discussion.

Good point. I completely forgot we have "Trading Discussion" board. I moved it here.

Quote from: Oshosondy on November 13, 2024, 04:48:00 PM

(...) Holders will prefer to have their coins on a noncustodial wallet where there is nothing like stop loss, take profit or trading stop. If they want to exchange, they will move their coins to exchange and convert it using market order after they have made profit already.

I understand this sentiment and that was my strategy for many years. But I had regrets after the last bullrun of not taking advantage of it, selling high and buying back more at a lower price, maximising my holdings. After the 2021 pump, we now have more data and know that the price was acting in a similar way than in the previous cycles, so, based on that, it should be easier to know what to expect this time.
But yeah, if someone is not comfortable in trying to time the market, holding is a good idea.

Ever-young

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Quote from: pawel7777 on November 13, 2024, 04:15:50 PM

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

When making Bitcoin accumulation, there is always some target in our mind, which, if that price is reached based on our own expectation, that's supposed to be our selling price, but because of a little greed of not knowing what will become of the price in time to come and fear of what will happen if the price drops below that amount, it makes us calculating if we are to sell or not.

If I'm to find myself in such situations, the amount I will sell is not going to be calculated based on the total volume I hold, but it will be based on how much profit is added and the volume I bought at a particular price. My selling will be based on the pattern I use to accumulate, but I won't sell above 50% of the total, so that if there is any negative or positive impact to the market, I won't have much to lose or regret.

Oshosondy

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People on this board will prefer to discuss about holding bitcoin. A post like this will better be in trading discussion. Holders will prefer to have their coins on a noncustodial wallet where there is nothing like stop loss, take profit or trading stop. If they want to exchange, they will move their coins to exchange and convert it using market order after they have made profit already.

pawel7777

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Activity: 2436

Merit: 1561

Quote

A trailing stop loss is an order that automatically adjusts to lock in profits as an asset's price moves in your favor. It sets a stop price that follows the market by a set amount, and if the price reverses by that amount, the order is triggered to sell or buy, limiting losses.

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits? You will never hit the exact top with this strategy but you are unlikely to hit it anyway. The convenience of it and not having to worry about the price all the time sounds pretty appealing to me.

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

Topic: Trailing stop loss - yay or nay? - page 2. (Read 288 times)