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
-
Flexible Placement:
- Stop Loss can be set inside the grid range.
- Orders beyond the Stop Loss level will remain unfilled.
-
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.
-
Static Stop Loss:
-
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:
- During bot creation, go to the Manual Adjustment section.
- Toggle on the Stop Loss option.
- Enter the desired trigger price.
2. For an Active Bot:
- Select the bot you want to modify (highlighted in blue).
- Click the [Bot Actions] button or the three-dot menu on the bot’s panel.
- Choose the [Modify Bot] option.
- In the Manual Adjustment section:
- Enable the Stop Loss feature.
- Enter the desired trigger price.
- Review your settings and click [Continue].
- Confirm your adjustments by clicking [Confirm].
Need Assistance?
If you encounter any issues or have questions, don’t hesitate to contact the Bitsgap Customer Support Team.