Trailing price movements offer a valuable technique by establishing a flexible range for purchasing and selling, and then tracking the market's ups and downs to pinpoint ideal entry or exit points. This way, you prevent trading when prices continue in the same direction.
With Gunbot, you can apply a trailing stop strategy by defining your desired trailing range. You'll typically set a percentage-based boundary that activates the bot's monitoring of prices for potential trades. Upon reaching the specified limit, Gunbot proactively follows price changes and modifies its buy/sell orders to optimize returns.
A key advantage of trailing price strategies is their adaptability, allowing users to respond to evolving market conditions with versatile trading tactics.
Implementing this strategy
Gunbot initiates one position —either long or short— and closes it once the target is met. If the stop is reached before successfully closing a trade, Gunbot will place a stop order at a loss. After completing a position, Gunbot starts looking for new long or short opportunities without adding to existing open positions.
The examples provided demonstrate the fundamental triggers for implementing a trailing stop strategy. Moreover, you can incorporate confirming indicators and settings, such as ROE trailing.
Long position opening conditions
Initiating a long position is permitted when buy trailing concludes below LONG_LEVEL.
Short position opening conditions
Initiating a short position is permitted when sell trailing concludes above SHORT_LEVEL.
A position is closed upon achieving the desired ROE (return on equity), which is calculated as a percentage from the entry point and accounts for leverage.
A position is closed at a loss if the negative ROE matches the STOP_LIMIT target.