Extend your grid with the Trailing Down
In this article, you will learn what a Trailing Down feature is: how it works, how to enable it for your new and existing bots, and what happens to the grid once it is activated.
Introduction
The benefit of the Trailing Down feature is extending the bot's grid below the initial setup, which allows the bot to follow the down-trending market and continue to trade even if the price goes below the range of the grid.
To continue trading on the downtrend, the bot will execute market buy orders using the quote currency and place new sell orders below the lower price border - this way, the system will keep the initial sell orders in place and add more sell orders, extending the initial grid.
It will continue placing new orders until the Stop Trailing Down Price is reached or if there is insufficient quote balance to execute new orders.
Info
The Stop Trailing Down Price is the condition where you tell our system to stop placing new orders below this price. This price condition can be set on new and existing bots.
How does the Trailing Down work?
Let's see how exactly Trailing Down works and how it allows the bot to expand the initial grid. In this example, we will use illustrations from the chart where you can see how the bot will execute new buy orders and, afterward, place new sell orders. This way, we can visually notice how your bot grid will expand.
The picture below shows the initial GRID bot setting, where the price moved below the lower price limit. To continue operating, we need the bot to expand the grid by adding new levels.
To do that with new sell orders, we need to obtain more base currency, which we will use to create a new sell order. First, we execute a buy order at the market price using the available quote currency from your balance.
Afterward, we place a new sell order below the bottom of the grid - this becomes our new lower price level of the bot. As a result, our grid is extended by one extra order, allowing us to trade on different from the initial settings price.
Attention
Your exchange account should have sufficient funds in the quote currency for the bot to place a new buy order. The bot needs to generate more base currency at a specific price to set a new sell order; thus, it will ignore the existing base currency on your available account.
The next time the price drops to another level, we will repeat this operation and execute another market buy order. This will allow us to place a new sell order one step down, creating a new lower price level.
The system will continue this process until the price reaches the Stop Trailing Down price or until there is insufficient quote currency on the available balance to place new buy orders.
The picture below shows an example of how our initial grid has expanded due to the work of the Trailing Down feature. We also highlighted the levels at which the system has purchased the new base currency. As you may notice, the bot creates a sell order for each newly filled buy order at a distance specified in the Grid Step settings.
Super Sell Order
If creating a new sell order is impossible due to exchange restrictions, we cancel some of the sell orders and place one large order using the weighted average price.
Such limits are applicable for most exchanges (100 open orders per trading pair), and exceptions are Binance & Kucoin (180 open orders per trading pair).
Visually, it looks like one separate order, which can be located far from the grid itself. There may be several Super Sell Orders, and it may seem that the bot grid is malfunctioning. But this is not the case; the bot just combined several regular orders into one large order.
Note
You can check it in the open orders tab of your bot. It will differ in volume from the rest of the orders. Usually, it is at least the volume of 10 separate sell orders.
How to enable Trailing Down?
In this part, you will learn how to activate the Trailing Down feature for new and active spot bots.
Info
You can enable Trailing Down only for GRID bots with the quote currency as an order size currency.
To maintain the trailing down feature without interruptions, it is essential to have an available quote currency on your account balance. Otherwise, it won't be possible to execute new buy orders to acquire new base currency to use in new sell orders.
To activate Trailing Down, you need to set the price to which the bot will expand the grid. This mandatory setting will prevent following the price in case of a significant drawdown.
Tip
You can use any price that is below the lowest border of your grid. If you want to run your bot indefinitely, then you can enter any number that is greater than 0 - but we strongly recommend limiting it to avoid any unexpected costs.
New bot
The Trailing Down can be activated when creating a new bot. To do so:
- Activate the toggle for Trailing Down (in the Manual Adjustment section).
- Enter the Stop Trailing Down price. Alternatively, you can drag the Stop Trailing Down price on the chart!
- Disable or Enable Pump Protection (enabled by default).
Note
Pump Protection pauses the work of Trailing Up and Trailing Down in case of significant volatility when the price is either actively growing or actively falling. After the temporary effect of these market events wears off, these features resume their work.
Active Bot
To activate Trailing Down for one of your active bots:
- Select the bot you want to modify.
- Click [Bot Actions] → [Modify Bot].
- Activate the toggle for Trailing Down (in the Manual Adjustment section).
- Enter the Stop Trailing Down price.
- Disable or Enable Pump Protection (enabled by default)
- Confirm the changes.
❗ Risk Warning
Trading crypto carries a high level of risk and may not be suitable for all traders or investors. The high degree of volatility can work against you as well as for you. Before deciding to trade crypto and use any automation, traders should carefully consider their investment objectives and level of experience.
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The Trailing Down feature does not move the grid but expands it. It means that the bot will take more funds from the available balance outside the initially set investment and increase the amount of the base currency that falls in price.
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Trailing Down does not make a profit on the declining market. The profit-taking happens from the execution of the new sell orders, which means the price should bounce upward.
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Trailing Down does not rearrange already open orders. It creates new buy orders to place new sell orders. Thus, the investment in the bot increases, and it becomes more exposed to even small price changes.
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