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

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.

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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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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 199 times)