In general the stop-loss is a position that triggers a sell operation when the asset price drops by a set percentage or of an amount. A stop-loss can be useful for a healthy risk-management trading strategy. In DipSway, you can set a custom stop-loss as a percentage on top of the bot(s) behaviour. Every time the bot opens a new order the bot places a stop-loss order with the percentage you set.
In general the take-profit is an open position that triggers a sell operation when the asset price reaches a specific percentage increase. A take-profit parameter is great if you want to make sure that once you go over a certain % of profit you take home the win without hesitation. In DipSway, the take-profit is settable as a percentage. Every time the bot opens a new order the bot places a take-profit order with the percentage you set.
How they work
The DipSway custom stop-loss and take-profit feature can be synergised with the bot(s) behaviour. This means that when you set a stop-loss or a take-profit you DON'T overwrite the bot(s) behaviour, you instead layer these custom settings on top of it.
Example: You set a Take-profit of 10%. When the bot opens a buy order, it will also open a take-profit order of 10% on that buy. 10% is a high percentage, so if the bought asset spikes at around 7% and the bot sees this as a great opportunity to profit on before the asset drops down, the bot behaviour won't wait for the asset to hit a +10% and it will sell at a +7%.
So the customizable Stop-loss & Take-profit are a great extra layer that allow you to:
set a safety net;
set a winning percentage you are happy with;
Congratulations! You now know how to set a Stop-loss & Take-profit to synergise the AI bot to your personal trading style!
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