The Trailing Stop method is a smart way to automatically buy or sell cryptocurrency when the price moves in your favor. It helps to lock in profits and limit losses without manually tracking the market all the time.
Steps to Use Trailing Stop on Binance
1. What is a Trailing Stop?š
It is a feature that moves (or "trails") with the price as it goes up or down. If the price reverses by a set percentage or amount, the trade is triggered to buy or sell automatically.
2. When to Use a Trailing Stop?š
Buying: When you want to buy at the best possible price during a market dip.
Selling: When you want to sell at the highest possible price while avoiding losses from sudden drops.
3. How to Set Up a Trailing Stop on Binance?š
For Selling (Take Profit)
Activation price: this is when your bot will open its eyes and start watching the market so it can hit your given target
Let's say you own Bitcoin (BTC) and its price is $40,000, but you think it might go higher.
Open the Binance app.
Go to the "Trade" section and choose your cryptocurrency (e.g., BTC/USDT).
Select "Sell", then choose "Trailing Stop" from the order types.4.
Set a trailing percentage, e.g., 5%.
If the BTC price reaches $45,000, the stop price will move to $42,750 (5% below the highest price).
When the price falls by 5% from the peak, your sell order will be executed.
For Buying (Buy at the Right Time)
Activation price : is when your bot will open eyes and start watching the market so it can hit your given target
Suppose Bitcoin is currently at $40,000, and you think it may drop before rising.
Open the Binance app.
Go to the "Trade" section and select your crypto pair (e.g., BTC/USDT).
Select "Buy", then choose "Trailing Stop" order type.
Set a trailing percentage, e.g., 3%.
If the price drops to $38,800, your buy order will activate
When the price starts rising after hitting the lowest point, Binance will place a buy order.
4. Example for Easy Understanding
Imagine you are selling apples:
If the price of apples goes up, you want to sell at the highest price possible. You set a rule that says,
"If the price drops by 5% from the highest, sell the apples." This way, you don't sell too early and also don't miss out if the price suddenly drops.
5. Why Use Trailing Stop?
Maximize Profits:Let profits run when the price is rising.
Minimize Losses: Avoid big losses by selling before the price drops too much.
Hands-Free Trading: No need to watch the market all the time. you can do your other work
Caution: sometimes it wonāt work as you predicted so change it by watching the market to maximize your profit
Now look at these images A, B, C.
Image A : I use it on $PEPE , you can choose your own coin.
Image B : if your satisfied with the setting click confirm
Image C: order is placed, now when Pepe's price reaches 0,00002050 or greater its bot will be activated. when it moves up from 0.00002100. it will wait for it to reach the peak and when it falls 3.0% from the peak bot will sell it.
You can use the same method for the Buy order.
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Auther : laktisha king
