Trailing stoploss is a more advanced version of sell-lo that allows the bot to slowly increase the stoploss as the token’s P/L increases. This aims to protect gains in situations where the token enjoyed a pump, but the pump wasn’t enough to trigger the sell-hi, also known as the take profit threshold. Consider the following example: the user’s sell-hi (or take profit) is set to +200%, which is 3x, and their sell-lo to -40%. The token’s P/L reaches a maximum of +190%, and then starts going down and never recovers. The following scenarios can unveil:
Without trailing stoploss, the bot will not autosell until the token goes all the way down to -40% again, which means that the user would’ve missed out on gains, and instead ended up with losses.
With trailing stoploss enabled, the bot will continuously adjust the stoploss based on the max P/L reached by the token at the time. Since the token reached a maximum of +190%, the bot would’ve adjusted the sell-lo from -40% to +74%. With this sell-lo, the bot gives the token enough leeway to recover while securing profits in the event that the token fully dies.
For the mathematically inclined, trailing stoploss calculates the new sell-lo according to the following formula:
New Sell-lo%=(100%+Starting Sell-lo %)∗(100%+Max P/L%)−100%
Please keep the following in mind when using trailing stoploss:
Trailing stoploss will continuously adjust the sell-lo. As long as the P/L keeps increasing to new record highs on the monitor, expect your sell-lo (or stoploss) to rise with it. The bot will always use the highest P/L recorded on the token’s monitor to calculate the new sell-lo. Trailing stoploss can only increase sell-lo. It can never decrease it, as that defeats the purpose.
Trailing stoploss will never adjust your sell-hi. It only targets your sell-lo.
If you activate trailing on the Trade Monitor AFTER a trade, then the bot will simply start trailing from your current sell-lo.
If you don’t like the stoploss value that trailing stoploss calculated for you, you can simply change it, and the bot will re-calibrate in the background. Whatever value you put in will be considered as the New Sell-lo, and the bot will calculate the Starting Sell-lo that would match it using the above formula. However, setting a new stoploss value while Trailing is already enabled resets the recorded maximum P/L on the monitor. The user’s P/L at the time of setting a new value will be considered the new maximum, and any increases in that will yield increases in the stoploss as well.