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/FAQ/Trading Bots/Using Stop Loss in Trading Bots

Using Stop Loss in Trading Bots

The Stop Loss feature is a critical tool for minimizing potential losses in trading bots. It allows you to automatically exit the market when the price reaches a predefined level, ensuring that losses are limited if the price moves against your strategy.

In this guide, you’ll find:

What is Stop Loss?

Stop Loss is designed to protect your investment by closing your trading bot when the market price reaches a specific condition. This feature ensures you exit the market automatically, limiting your losses during unfavorable price movements. When Triggered:

  • All open orders from the bot are canceled.
  • The bot:
    • GRID Bot: Sells the base currency at the best available market price.
    • BTD Bot: Buys back the base currency using the quote currency.
  • The bot is moved to the Bot History tab, and its activity stops.

Note: The Stop Loss executes via a market order at the best available price. The actual execution price may differ slightly from the trigger price due to market conditions.

Key Features of Stop Loss

  1. Flexible Placement:
    • Stop Loss can be set inside the grid range.
    • Orders beyond the Stop Loss level will remain unfilled.
  2. Static vs. Dynamic Stop Loss:
    • Static Stop Loss:
      • Permanent when Trailing features are disabled.
    • Dynamic Stop Loss:
      • When Trailing Up (GRID Bot) or Trailing (BTD Bot) is enabled, Stop Loss follows the grid at a fixed interval whenever it moves.
  3. Customizable Behavior:
    • You can disable Trailing Stop Loss for GRID Bots.
    • In this case, the bot will trail upward when the price exceeds the grid’s high range, while the Stop Loss remains fixed.

 

How to Activate Stop Loss

1. For a New Bot:

  1. During bot creation, go to the Manual Adjustment section.
  2. Toggle on the Stop Loss option.
  3. Enter the desired trigger price.

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2. For an Active Bot:

  1. Select the bot you want to modify (highlighted in blue).
  2. Click the [Bot Actions] button or the three-dot menu on the bot’s panel.
  3. Choose the [Modify Bot] option.
  4. In the Manual Adjustment section:
    • Enable the Stop Loss feature.
    • Enter the desired trigger price.
  5. Review your settings and click [Continue].
  6. Confirm your adjustments by clicking [Confirm].

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Need Assistance?
If you encounter any issues or have questions, don’t hesitate to contact the Bitsgap Customer Support Team.