📉Trailing Stop Loss
Last updated
Last updated
A Trailing Stop Loss is an advanced order type that automatically adjusts the stop price as the market moves in your favor. This allows you to secure profits while minimizing potential losses if the price drops. With BONKBot, you can easily set a trailing stop loss during a sell order, and it will dynamically follow price increases while protecting your position.
How Trailing Stop Loss Works:
A Trailing Stop Loss is set as a percentage or multiple below the current market price.
As the token price increases, the trailing stop follows the price movement upwards, maintaining the set distance (either a percentage or price gap).
If the price drops by the specified amount or percentage, the stop loss triggers and sells your tokens, thus limiting losses or locking in gains.
Steps to Set a Trailing Stop Loss:
Select the Limit option in the main menu and then choose Limit Sell %.
Enter the amount of your position you want to protect with the trailing stop (e.g., 75% of your current position).
You will be asked to specify a trigger condition. This will determine how far below the current price the trailing stop will be placed. For example:
Percentage change: Enter a percentage (e.g., "5%"). This means the trailing stop will follow the token’s price at a distance of 5%.
Multiple: Enter a multiple (e.g. "0.8x").
Confirm the details of the trailing stop order and adjust slippage if needed.
Trigger: 0.8x multiple of the current market cap (i.e., when the market cap reaches 75% of its value).
Amount: 2.85M Bonk, 50% of the current position.
Slippage: No slippage constraint
Trailing: Enabled (indicated by the green "Trailing" button).
This trailing stop will sell 50% of the user’s position if the market cap drops to 0.8x of its current value.
Once confirmed, this trailing stop will adjust upwards with any market cap increase but will trigger if the token’s market cap drops below the threshold.
