Trailing stop loss - yay or nay?

[pawel7777]

A trailing stop loss is an order that automatically adjusts to lock in profits as an asset's price moves in your favor. It sets a stop price that follows the market by a set amount, and if the price reverses by that amount, the order is triggered to sell or buy, limiting losses.

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits? You will never hit the exact top with this strategy but you are unlikely to hit it anyway. The convenience of it and not having to worry about the price all the time sounds pretty appealing to me.

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

[philipma1957]

I thought I answered this.

I did a down buy ladder



57k
55k
51k
48k
42k

it did two sell ladders.

cant remember but

say

74k
77k
81k
83k
85k. all sold

and

89k
92k
95k
98k
101k

so seven of the sell numbers are done.

and three of buys are done


waiting on a crash to 48 then 42

or a runup to 101k

I pay no attention as I am set for buys and sells

[Stompix]

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits?

Like everything else, it's just a gamble and it depends on how lucky you are.
The market could crash 40% and stay there for a few months like it did in the past and your 10% margin would be a profit-making move or the market could crash just below your set range and then renounce by another 50% making it look like you sold at the bottom.

If anyone had a solution for this they would have one hell of a crystal globe.
It's all about what you think your objectives are and how high your expectations too.

[philipma1957]

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits?

Like everything else, it's just a gamble and it depends on how lucky you are.
The market could crash 40% and stay there for a few months like it did in the past and your 10% margin would be a profit-making move or the market could crash just below your set range and then renounce by another 50% making it look like you sold at the bottom.

If anyone had a solution for this they would have one hell of a crystal globe.
It's all about what you think your objectives are and how high your expectations too.

Well as we now push at an unthinkable number 100k a coin.

Many will cash a lot too their coins.

Some will continue to press their luck hoping for a bigger number.


Myself as usual I sell on the way up.

My second sell ladder is down to 1 sale at 101k

If it all crashes way down soon I was brilliant if we go all the way to 200k I sold too fast.

[Stompix]

If it all crashes way down soon I was brilliant if we go all the way to 200k I sold too fast.

That's why I said it was a gamble, I say we cross 100k easily and we do a bit of retracing exactly after, but after that, I don't have a clue, we might get stuck for a year at over 100k or we might push for 150k in another week just before the new year, I give each one of those the same chances, the market is truly wild right now.

[pawel7777]

It's all about what you think your objectives are and how high your expectations too.

Objective is simple - to take advantage of this cycle's bull run and maximise profits.
The purpose of the trailing loss is not to set your expectations at a certain price but rather to move along with the uptrend and see where it takes you.

The problem is, judging on the past price actions, dips of 20% on the way up could happen, and setting trailing stop loss above 20% doesn't lie well with me, so probably I'll just stick to watching indicators and do the trailing with only a small portion.

[milewilda]

If it all crashes way down soon I was brilliant if we go all the way to 200k I sold too fast.

That's why I said it was a gamble, I say we cross 100k easily and we do a bit of retracing exactly after, but after that, I don't have a clue, we might get stuck for a year at over 100k or we might push for 150k in another week just before the new year, I give each one of those the same chances, the market is truly wild right now.

Its been unpredictable since from the start, we might be having those kind of clues on which we could be able to see some possibilities on where it do retrace or making out some pullbacks
on which we know that Bitcoin is overbought as of this moment basing up with TA's but these words actually been said when it hit up on $90k but still it did push through almost 100k
now on which it do really tells us that there's no way that you could be able to tell on where the price will be stopping but to assume out that 100k will be a strong resistance to break
but well this one is always been a speculation.

[hugeblack]

Corrections of more than 13% are usually deep so whenever the change is more than 10% it may be better to put a trailing offset. In general it should be part of your trading strategy. At the moment trading can be confusing because we have not determined the psychological levels yet and after $100k, trading will be based on luck.

[Stompix]

The problem is, judging on the past price actions, dips of 20% on the way up could happen, and setting trailing stop loss above 20% doesn't lie well with me, so probably I'll just stick to watching indicators and do the trailing with only a small portion.

And you see, you have just backed yourself into a corner when the strategy that might work doesn't fit your own targets, and no matter what you do the risk for losses or unrealized gains evaporating is the same. Pretty normal, there is no bulletproof strategy, there is no algorithm that can guarantee you anything, the same thing that can save your skin today might make you regret trading next month, in short gambling!

So, as usual, the best advice would be to hold until you actually need the money!

[pawel7777]

And you see, you have just backed yourself into a corner when the strategy that might work doesn't fit your own targets, and no matter what you do the risk for losses or unrealized gains evaporating is the same. Pretty normal, there is no bulletproof strategy, there is no algorithm that can guarantee you anything, the same thing that can save your skin today might make you regret trading next month, in short gambling!

Just because there's no bullet-proof, 100% effective strategy doesn't mean that no matter what you do the risk of loss stays the same. Some strategies are more effective than others, holding forever is just one of them.
Nothing in this world is guaranteed, but it's all about maximising your chances.

So, as usual, the best advice would be to hold until you actually need the money!

I don't think that was ever good advice to begin with. If I happen to need money when Bitcoin is at the very bottom of a bear market, would selling it then be a better option than selling it at (or close to) the previous peak? Of course not.
Historically, those who applied the sell-the-top-buy-the-dip strategy are better off than those who just held, even if they were not quite accurate in predicting the tops/bottoms.

[Stompix]

Just because there's no bullet-proof, 100% effective strategy doesn't mean that no matter what you do the risk of loss stays the same.

And the rewards match the risks, as I said, it's just like gambling.

So, as usual, the best advice would be to hold until you actually need the money!

I don't think that was ever good advice to begin with. If I happen to need money when Bitcoin is at the very bottom of a bear market, would selling it then be a better option than selling it at (or close to) the previous peak? Of course not.
Historically, those who applied the sell-the-top-buy-the-dip strategy are better off than those who just held, even if they were not quite accurate in predicting the tops/bottoms.

Maybe I said it wrong, so it would be more like when you feel comfortable with the amount you have in hand, I always said not to invest more than you afford to lose in the blink of the eye so from my point of view bitcoin investment should be treated as money you will spend only when you feel like, write them off from the start and enjoy the profits when you feel like spending.

As for the thing about selling at the bottom, if you get diagnosed with an illness that will cost you a ton I doubt anyone would have sold at the top only to keep the cash on him exactly for that, if you have a life-threatening emergency you think of your life first, not tops and bottoms.

[Azharul]

If it all crashes way down soon I was brilliant if we go all the way to 200k I sold too fast.

That's why I said it was a gamble, I say we cross 100k easily and we do a bit of retracing exactly after, but after that, I don't have a clue, we might get stuck for a year at over 100k or we might push for 150k in another week just before the new year, I give each one of those the same chances, the market is truly wild right now.

Its been unpredictable since from the start, we might be having those kind of clues on which we could be able to see some possibilities on where it do retrace or making out some pullbacks
on which we know that Bitcoin is overbought as of this moment basing up with TA's but these words actually been said when it hit up on $90k but still it did push through almost 100k
now on which it do really tells us that there's no way that you could be able to tell on where the price will be stopping but to assume out that 100k will be a strong resistance to break
but well this one is always been a speculation.

Actually, I think that your comment is very prefer for this time. So I am also agree with your prefer comment. We also know that when you could create in this topic then maybe Bitcoin price remain under $90k. But if we follow in cryptocurrency market we can see that bitcoin price is increasing near $100k in cryptocurrency market. So I think that this trailing will be very prefer for all crypto users in cryptocurrency world.

[bounceback]

STOP LOSS? absolutely yes in cryptocurrency trading because when taking decision for stop loss we have opportunity get recovery our loss capital by investing at another lower. No doubt set up stop loss feature when my coins assets investing have decreasing until 20% and I will buy back with lower price get faster recovery and get back my capital loss before.
Keep hold it waiting recovery looks difficult and potential become long term holder, better take stop loss for awhile although have loss few percent and get another opportunity to buy at lower price.

[milewilda]

STOP LOSS? absolutely yes in cryptocurrency trading because when taking decision for stop loss we have opportunity get recovery our loss capital by investing at another lower. No doubt set up stop loss feature when my coins assets investing have decreasing until 20% and I will buy back with lower price get faster recovery and get back my capital loss before.
Keep hold it waiting recovery looks difficult and potential become long term holder, better take stop loss for awhile although have loss few percent and get another opportunity to buy at lower price.

Stop loss would really be that relevant or something which is really that important because at the moment that you do make use or deal up with futures trading but if you are really that doing with spot then you will be definitely not consider on making use of stop loses because there's no way that you will be that liquidated because on the moment that you will be having that negative on which you just that simply having that waiting up for recovery. This is why its important that you do really know at least on what are the things that you've been dealing into because if you are really that not having that awareness then you will be ending up on a disaster.

[MrSpasybo]

A trailing stop loss is an order that automatically adjusts to lock in profits as an asset's price moves in your favor. It sets a stop price that follows the market by a set amount, and if the price reverses by that amount, the order is triggered to sell or buy, limiting losses.

As in the subject - is setting up a trailing stop loss for Bitcoin a good idea to (somewhat) maximise your profits? You will never hit the exact top with this strategy but you are unlikely to hit it anyway. The convenience of it and not having to worry about the price all the time sounds pretty appealing to me.

If it's a good idea, what would be the most optimal trailing level (trailing offset)? 10%? 15%? More? Or maybe it would be better to define it in fiat amount rather than percentage?

Any thoughts/experiences?

An interesting topic, as trailing stop loss is also an issue that I have analyzed and wanted to apply but was unsuccessful. Perhaps it is not suitable for my style. If investors have the habit of using trailing stop loss and are satisfied with the profit, they can continue to use it, a margin of 10% or even 38.2% can also be accepted.

Personally, I will only sell crypto assets when the price chart falls out of the uptrend, and sometimes that is when the price has dropped 50% from the recent peak. However, it also helps me to limit unnecessary transactions when participating in the market during bullrun.