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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:

  1. What is Stop Loss?
  2. Key Features of Stop Loss
  3. How to Activate Stop Loss

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:

  1. All open orders from the bot are canceled.
  2. 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.
  3. The bot is moved to the Bot History tab, and its activity stops.

NoteThe 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.