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Trailing Stop-Stop Limit (TSSL)

Employing a trailing stop approach can be advantageous in trading, as it involves defining a modifiable range for purchase and sale activities. It tracks price fluctuations to pinpoint the most favorable moments for entering or exiting trades, preventing premature transactions while the trend remains consistent.

With Gunbot, you can apply the trailing stop strategy by first determining your ideal trailing range. Typically, this is done by setting a percentage-based criterion that prompts the bot to start observing price movements for potential trades. Once the set limit is reached, Gunbot will actively monitor prices and modify its buy/sell orders to optimize profits.

A key advantage of using the trailing stop method is its capacity to accommodate dynamic trading strategies that adapt to evolving market conditions.

Conditions for Buy Methods

Trailing activates when the price falls below the configured buy level percentage, and the initial trailing stop is established at the buy range percentage above the current price. The trailing stop descends as the price continues to drop. If the price begins to rise, the trailing stop remains stationary. A buy is permitted when the price surpasses the trailing stop value, given that the buy level percentage criterion is still satisfied.

Conditions for Sell Methods

Trailing initiates when the price exceeds the specified gain percentage, with the initial trailing stop positioned at the sell range percentage below the current price. The trailing stop ascends as the price continues to climb. When the price decreases, the trailing stop does not change. A sell is authorized when the price dips below the trailing stop value, provided that the gain percentage requirement is still fulfilled.

Trading Illustration

The following example demonstrates the performance of trading using this strategy. Settings and specifics

The infographic below illustrates the factors that initiate trades with this approach.

You can choose the option to sell exclusively for profit, minimizing the risk of a stop-limit sell at a loss while still within the initial range around the purchase price. This feature is known as TSSL_TARGET_ONLY.

Minimum profit = tssl - SELL_RANGE

Optionally, you can incorporate extra indicators like RSI to further verify entry and exit points.