Frequently Asked Questions
Find quick answers to common questions about trailing stop bots.
General Questions
What is a trailing stop bot?
A trailing stop bot is an automated trading strategy that uses dynamic stop-loss orders to protect profits while allowing positions to capture trends. As the price moves in your favor, the stop-loss "trails" behind at a fixed distance, locking in gains while giving the position room to grow.
Simple explanation:
Imagine climbing a mountain with a safety rope:
- As you climb higher, your rope anchor moves up with you
- If you slip, the rope catches you at the new higher level
- You never fall all the way to the bottom
- But you can still climb as high as possible
Learn more about trailing stops →
Is trailing stop trading profitable?
Trailing stop trading can be highly profitable in trending markets, but it's not guaranteed. Profitability depends on:
Favorable Conditions:
- Trending markets (uptrends for longs)
- Sustained momentum
- Proper parameter configuration
- Good entry timing
Expected Returns:
- Conservative: 30-60% APR
- Moderate: 60-100% APR
- Aggressive: 100-200%+ APR (with higher risk)
Reality: Trailing stop trading is most effective in trending markets and can underperform in ranging conditions. It requires proper setup, backtesting, and ongoing management.
peringatan
Past performance does not guarantee future results. You can lose money if:
- Markets are choppy/ranging
- Stop loss is too tight (whipsaws)
- Poor parameter configuration
- Wrong market conditions
What is the minimum investment required?
Technical Minimum: Depends on the exchange and trading pair, but generally:
- $100-$500 for most major pairs
- Must meet exchange minimum order sizes
- Consider fees (need profit margin)
Practical Minimum:
- $500-$1,000 recommended for beginners
- Allows for meaningful position sizes
- Provides buffer for fees
- Reduces impact of minimum order requirements
- Can withstand normal volatility
Example:
$500 investment:
- Meets most exchange minimums
- Allows for reasonable position size
- Fees are manageable percentage
- Good for learning
$100 investment:
- May be below minimums
- Position too small
- Fees eat larger % of profit
- Not recommended
When should I use trailing bot vs grid bot?
Use Trailing Bot When:
✅ Market Conditions:
- Clear trending market (up or down)
- Strong momentum
- Breakout scenarios
- Sustained directional movement
✅ Your Goals:
- Want to ride trends
- Maximize profit in single direction
- Active trend following
- Higher risk tolerance
✅ Asset Characteristics:
- High liquidity
- Clear technical levels
- Good volatility (but not extreme)
- Momentum-driven
Use Grid Bot When:
✅ Market Conditions:
- Ranging/sideways market
- Oscillating within boundaries
- No clear trend direction
- Mean-reverting behavior
✅ Your Goals:
- Profit from volatility
- Lower risk preference
- Frequent small gains
- Market-neutral strategy
✅ Asset Characteristics:
- Trading in defined range
- Predictable support/resistance
- Regular oscillations
Comparison:
| Factor | Trailing Bot | Grid Bot |
|---|---|---|
| Best Market | Trending | Ranging |
| Profit Source | Directional move | Oscillations |
| Position | Single position | Multiple orders |
| Risk | Higher | Lower |
| Potential Return | Higher in trends | Consistent |
| Complexity | Moderate | Higher |
Example Decision:
BTC currently trending up from $50k:
→ Use Trailing Bot (capture trend)
BTC oscillating between $48k-$52k:
→ Use Grid Bot (profit from range)
How many trailing bots can I run simultaneously?
Technical Limit: No platform limit
Practical Recommendations:
Beginners: 1-3 bots
- Focus on learning
- Easier to monitor
- Less capital at risk
- Build experience
Intermediate: 3-5 bots
- Some experience gained
- Can handle complexity
- Good diversification
- Different strategies/assets
Advanced: 5-10+ bots
- Experienced traders
- Active monitoring
- Sophisticated risk management
- Multiple strategies
Considerations:
Too many bots:
❌ Difficult to monitor
❌ Capital spread too thin
❌ Complexity increases errors
❌ Time-intensive management
❌ Correlated losses possible
Too few bots:
❌ Lack of diversification
❌ Over-concentration risk
❌ Missing opportunities
❌ Higher variance
Sweet spot: 3-5 well-managed bots on different assets
Example Portfolio:
Bot 1: BTC Conservative (40% capital)
Bot 2: ETH Moderate (30% capital)
Bot 3: SOL Aggressive (20% capital)
Reserve: 10% for opportunities
Can I modify a running bot?
Short answer: No, not while running.
To modify a trailing bot:
- Stop the bot (closes any open position)
- Edit the configuration
- Restart the bot with new settings
What happens when you stop:
- Any open position closes immediately at market price
- Your trailing stop is cancelled
- P&L is finalized
- Bot becomes editable
Why this limitation?
Changing parameters mid-trade would:
- Invalidate current stop calculations
- Create inconsistent risk management
- Potentially orphan the position
- Risk position mismatches
- Cause calculation errors
Best practice:
- Plan configuration carefully before starting
- Backtest thoroughly
- Paper trade first
- Only edit after position closes naturally
- Or wait for good exit point to stop
What happens to my position if I stop the bot?
When you stop a trailing bot:
If Position is Open:
- ✓ Position closes immediately
- ✓ Closes at current market price
- ✓ Trailing stop is cancelled
- ✓ P&L finalized
- ✓ Funds returned to available balance
Example:
Before stopping:
- Position: 0.2 BTC entered at $50,000
- Current price: $57,500
- Unrealized P&L: +$1,500
- Trailing stop: $54,625
You click "Stop Bot":
- Position sold at: ~$57,500 (market price)
- Realized P&L: +$1,500 (approximately)
- Funds available: ~$11,500
- Bot status: Stopped
Note: You don't exit at the trailing stop level,
you exit at current market price
If No Position:
- Bot simply stops
- No trades to close
- Ready to edit or restart
Timing Your Stop
If you need to stop the bot and you're in a profitable position, consider waiting for a good moment (price near peak, not during dip) to maximize your exit price.
Do I need to keep my browser open?
No! Trailing bots run on Kelor's servers, not in your browser.
What this means:
- ✓ Close your browser anytime
- ✓ Shut down your computer
- ✓ Bot continues monitoring 24/7
- ✓ Positions managed automatically
- ✓ Stops execute even when offline
You only need browser to:
- Monitor performance
- Check positions
- Adjust settings
- Review results
- Stop/start bots
Example:
10:00 AM: Start trailing bot, enters position at $50k
10:05 AM: Close laptop, go to work
2:30 PM: Price hits $60k, bot hits activation
4:45 PM: Price peaks at $62k, trailing adjusts
11:30 PM: While sleeping, price dips to trailing stop
11:31 PM: Bot exits at $58,900 (+17.8%)
8:00 AM: Check results, see profit accumulated
Your bot worked all day and night without you!
tips
Set up email or push notifications for important events (position opened, closed, stopped) so you stay informed without constantly checking.
Strategy Questions
What's the optimal trailing stop percentage?
There's no universal "best" percentage - it depends on:
- Asset volatility
- Market conditions
- Your risk tolerance
- Timeframe you're trading
General Guidelines:
Conservative (7-10%):
Best for:
- Volatile assets (altcoins)
- Risk-averse traders
- Beginners
- Uncertain markets
Trade-off:
+ Fewer whipsaws
+ More stable
- Give back more profit
Moderate (4-6%):
Best for:
- Major pairs (BTC, ETH)
- Balanced approach
- Most situations
- Standard trading
Trade-off:
+ Balanced profit/safety
+ Industry standard
~ Moderate whipsaws
Aggressive (2-4%):
Best for:
- Strong trends
- Low volatility periods
- Experienced traders
- Maximum profit capture
Trade-off:
+ Lock in more profit
+ Capture near-peak
- More whipsaws
- Higher stress
Asset-Specific Recommendations:
| Asset Type | Typical Volatility | Recommended Trailing |
|---|---|---|
| BTC | Moderate | 5-7% |
| ETH | Moderate-High | 5-7% |
| Large-cap alts | High | 7-10% |
| Small-cap alts | Very High | 10-15% |
| Stablecoins | Very Low | N/A (use grid) |
Testing Approach:
1. Start with 5% (moderate)
2. Run for 2 weeks
3. Review results:
- Getting whipsawed? Widen to 7%
- Missing peaks? Tighten to 4%
4. Backtest changes
5. Implement adjustment
6. Monitor and repeat
Finding YOUR Optimal
The best trailing percentage is found through:
- Backtesting on historical data
- Paper trading in real-time
- Iterative optimization
- Personal risk tolerance consideration
Should I use a take profit target?
It depends on your strategy and goals:
Use Take Profit When:
✅ You have a specific target:
Technical analysis shows resistance at $65k
Current: $50k
Set take profit: $64,500
Benefit: Guaranteed exit before resistance
Lock in +29% profit
✅ You want certainty:
Risk-averse trader
Prefer guaranteed 25% over potential 40%
Sleep better with certainty
Benefit: Know exact max profit
No regrets if crashes after
✅ Clear market structure:
Historical resistance at $60k
Price always reverses there
Set take profit: $59,500
Benefit: Exit at predictable level
Avoid reversal
Skip Take Profit When:
✅ You want maximum capture:
Strong momentum
No resistance visible
Let trailing stop do its job
Benefit: Unlimited upside
Ride full trend
Trail captures most
✅ Market in strong trend:
Bull market
Momentum building
Resistance far away
Benefit: Don't cap gains early
Let trend run fully
✅ Trading strong assets:
BTC in parabolic phase
New all-time highs
No known resistance
Benefit: Participate fully
Trail protects downside
Capture entire move
Hybrid Approach:
Set take profit very high
Example: +100% or +150%
Acts as safety ceiling only
Rarely hits
But caps extreme moves
Trailing stop handles normal exits
Best of both worlds
Decision Framework:
Ask yourself:
1. Is there clear resistance nearby?
→ Yes: Use take profit
→ No: Skip it
2. Do I prefer certainty or maximum gain?
→ Certainty: Use take profit
→ Maximum: Skip it
3. How strong is the trend?
→ Strong: Skip take profit
→ Weak: Use take profit
What's the best re-entry strategy?
Each re-entry strategy has pros and cons:
Pullback (Price < Exit)
How it works:
Exit at: $57,000
Re-enters when: Price drops below $57,000
Best for:
✓ Risk-averse traders
✓ Avoiding chasing pumps
✓ Mean-reversion approach
✓ Choppy markets
Pros:
- Don't buy higher than exit
- Wait for confirmation
- More conservative
- Avoid FOMO
Cons:
- May miss continuation rallies
- Price might not pull back
- Could miss strong trends
- Slower re-entry
Example:
Exit: $57k → Price: $58k → No entry (waiting)
Exit: $57k → Price: $59k → No entry (waiting)
Exit: $57k → Price: $56k → ENTRY ✓
Good for: Mean reversion, choppy markets
Aggressive (Always Re-enter)
How it works:
Exit at: $57,000
Re-enters: Immediately at current price
Best for:
✓ Strong trending markets
✓ Momentum strategies
✓ Bull markets
✓ Quick re-entry
Pros:
- Never miss continuations
- Stay in trend
- Maximum participation
- Simple logic
Cons:
- May buy tops
- Could enter declining moves
- Higher risk
- More trades = more fees
Example:
Exit: $57k → Immediate entry at $57.5k
Price goes to $65k → Captured move ✓
or
Price drops to $52k → Bad entry ✗
Good for: Strong trends, bull markets
Percentage Pullback
How it works:
Exit at: $57,000
Pullback: 3%
Re-enters at: $55,290 (3% below exit)
Best for:
✓ Balanced approach
✓ Defined entry logic
✓ Waiting for dips
✓ Most market conditions
Pros:
- Clear entry rules
- Wait for meaningful dip
- Avoid immediate chase
- Balanced approach
Cons:
- Pullback might not happen
- Percentage needs optimization
- Could miss quick reversals
- Requires testing
Example:
Exit: $57k
3% pullback needed: $55,290
Price dips to $55k → ENTRY ✓
Good for: Most situations, balanced
Conditional (Custom Rules)
How it works:
Base: Any strategy above
Plus: Stop condition
Example: Stop after overall +50% profit
Best for:
✓ Profit targets
✓ Risk management
✓ Capital preservation
✓ Defined goals
Pros:
- Custom rules
- Automatic profit lock
- Prevents overtrading
- Goal-oriented
Cons:
- More complex
- May stop too early
- Requires planning
- Manual restart needed
Example:
Use Pullback + Stop at +40% overall
Trade 1: +12%
Trade 2: +15%
Trade 3: +8%
Overall: +35%
Trade 4: +10%
Overall: +45% (hits +40% condition)
Bot stops entirely
Profit locked: +45%
Good for: Profit targets, risk management
Recommendation by Market:
| Market Condition | Best Re-entry | Why |
|---|---|---|
| Strong Uptrend | Aggressive | Don't miss continuation |
| Choppy/Ranging | Pullback | Wait for confirmation |
| Moderate Trend | % Pullback (3-5%) | Balanced approach |
| After Big Gains | Conditional | Lock profits |
| High Volatility | % Pullback (5%+) | Need bigger buffer |
How tight should my initial stop loss be?
The initial stop loss protects you before trailing activates.
General Guidelines:
Relationship to Activation:
Rule of Thumb:
Initial Stop ≈ 40-50% of Activation Profit
Examples:
Activation 10% → Initial Stop 4-5%
Activation 15% → Initial Stop 6-7%
Activation 20% → Initial Stop 8-10%
This ensures balanced risk/reward
By Risk Tolerance:
Conservative (2-4%):
Pros:
✓ Very tight protection
✓ Small losses
✓ Quick exit on wrong direction
Cons:
✗ May get stopped on noise
✗ Miss valid setups
✗ Higher loss rate
Best for: Very risk-averse, volatile assets
Moderate (5-7%):
Pros:
✓ Room for volatility
✓ Balanced approach
✓ Industry standard
✓ Good for most pairs
Cons:
~ Moderate loss if triggered
~ Need good entries
Best for: Most traders, BTC/ETH
Loose (8-12%):
Pros:
✓ Lots of room
✓ Rarely gets hit
✓ Good for choppy assets
Cons:
✗ Larger loss if triggered
✗ Capital tied up longer
✗ Harder psychologically
Best for: Very volatile altcoins
Asset-Specific:
| Asset | Typical Range | Recommended |
|---|---|---|
| BTC | 3-7% daily moves | 5% initial stop |
| ETH | 4-8% daily moves | 5-6% initial stop |
| Large-cap alts | 5-10% daily moves | 6-8% initial stop |
| Small-cap alts | 10-20% daily moves | 8-12% initial stop |
Testing Your Stop:
Too Tight (hitting too often):
- more than 30% of trades hit initial stop
- Never reaching activation
Solution: Widen stop 1-2%
Too Loose (capital inefficient):
- Almost never hits
- Long negative holds before activation
Solution: Tighten stop 1-2%
Just Right:
- 10-20% hit rate on initial stop
- Most trades reach activation
- Acceptable loss size
Key Principle
Your initial stop should be:
- Tight enough to limit losses
- Wide enough to not get hit by normal volatility
- Proportional to your activation profit
- Comfortable for your risk tolerance
Why did my position close at a different price than my stop?
This is normal and happens due to several factors:
1. Market Orders vs Stop Price
How trailing stops work:
Trailing Stop Level: $57,000
This is a TRIGGER price, not execution price
When price hits $57,000:
→ Market order placed
→ Executes at current market price
→ Might be $56,950 or $57,100
This is called SLIPPAGE
Example:
Stop set at: $57,000
Price drops fast: $57,200 → $56,800
Your order fills: ~$56,850
Slippage: $150 below stop
Normal in fast-moving markets
2. Order Book Dynamics
Liquidity matters:
High Liquidity (BTC/USDT):
Stop: $57,000
Fill: $56,980
Slippage: $20 (0.035%)
Low Liquidity (RARE/USDT):
Stop: $10.00
Fill: $9.75
Slippage: $0.25 (2.5%)
Much worse slippage in low-liquidity pairs
3. Market Volatility
Fast-moving markets:
Normal Market:
Stop: $57,000
Fill: $56,950-$57,050
Acceptable range
Volatile Market:
Stop: $57,000
News just hit, price crashes
Fill: $55,500
Large slippage
Extreme volatility causes large slippage
4. Exchange Execution
Different outcomes:
Best case: Fill at or better than stop
Stop: $57,000
Fill: $57,100 (slightly better)
Typical: Small slippage
Stop: $57,000
Fill: $56,900-$56,950
Worst case: Large slippage
Stop: $57,000
Fill: $56,500 (fast market)
Solutions:
Minimize Slippage:
✓ Trade highly liquid pairs (BTC, ETH)
✓ Avoid very volatile assets
✓ Use slightly wider stops
✓ Factor slippage into calculations
✓ Accept it's part of trading
Calculate Expected Slippage:
When setting stops, assume:
High liquidity: 0.1-0.3% slippage
Medium liquidity: 0.3-1% slippage
Low liquidity: 1-3%+ slippage
Plan for this in your strategy
Reality Check
Perfect execution at exact stop price is rare. Slippage of 0.1-0.5% is normal and acceptable. If slippage is consistently more than 1%, consider more liquid trading pairs.
Technical Questions
What timeframe should I use for trailing?
The timeframe affects how your bot operates:
Shorter Timeframes (1m, 5m, 15m):
Characteristics:
- Very active trading
- Many signals
- Quick entries/exits
- High frequency
Pros:
+ More opportunities
+ Quick profits possible
+ Active engagement
Cons:
- More whipsaws
- Higher fees (many trades)
- More noise
- Stressful to monitor
- Requires tight stops
Best for: Experienced traders, scalping
Trailing: 2-3% very tight
Medium Timeframes (30m, 1h, 4h):
Characteristics:
- Moderate trading activity
- Balanced frequency
- Swing trades
- Reasonable holding times
Pros:
+ Balanced approach
+ Less noise
+ Manageable monitoring
+ Good risk/reward
Cons:
~ Moderate trade frequency
~ Need patience
Best for: Most traders, standard approach
Trailing: 4-7% moderate
Longer Timeframes (1d, 1w):
Characteristics:
- Longer-term trends
- Few but quality trades
- Extended holds
- Position trading
Pros:
+ Best signal quality
+ Lowest noise
+ Minimal monitoring
+ Best trends
+ Lower fees
Cons:
- Rare entries
- Requires patience
- Capital tied up longer
- Miss short-term moves
Best for: Patient traders, long-term
Trailing: 8-12% wider
Recommendation:
Beginners: Start with 4h or 1d
- Less stressful
- Better signals
- More forgiving
- Easier to learn
Intermediate: 1h or 4h
- Good balance
- Active but manageable
- Decent opportunities
Advanced: Any timeframe
- Based on strategy
- Can handle complexity
- Multiple bots on different timeframes
The "Timeframe × 3" Rule:
Your stop should account for typical volatility:
1m timeframe: Very tight stops (2-3%)
15m timeframe: Tight stops (3-4%)
1h timeframe: Moderate stops (4-6%)
4h timeframe: Wider stops (5-8%)
1d timeframe: Wide stops (7-12%)
Longer timeframes need wider stops
to avoid noise-based whipsaws
Can trailing bots short/sell assets?
Currently: Most implementations support LONG positions only (buying then selling).
Long Trailing (Standard):
Strategy: Profit from upward moves
Entry: Buy the asset
Hold: As price rises
Trailing: Protects from downside
Exit: Sell when trailing triggers
Example:
Buy BTC at $50k
Price rises to $60k
Trail at $57k
Exit at $57k
Profit: +14%
Short Trailing (Advanced - if available):
Strategy: Profit from downward moves
Entry: Short sell the asset
Hold: As price falls
Trailing: Protects from upside
Exit: Buy back when trailing triggers
Example:
Short BTC at $50k
Price falls to $40k
Trail at $42k
Exit at $42k
Profit: +16%
Requires:
- Exchange support for shorting
- Margin account
- Understanding of short mechanics
- Higher risk
For Most Users:
Focus on: Long positions only
Reason:
✓ Simpler
✓ Lower risk
✓ No margin needed
✓ No funding fees
✓ Easier to understand
You can still profit in bear markets:
→ Trade stablecoins
→ Sit out declines
→ Use different strategy (grid bot on stables)
How do I handle exchange maintenance?
Planned Maintenance:
Before Maintenance:
Exchange announces: "Maintenance in 2 hours"
Your actions:
1. Check if your bot has open position
2. Decide: Keep position or close?
Option A: Close position
- Stop bot before maintenance
- Position closes at market
- Safe and simple
Option B: Keep position
- Pause bot (if maintenance short)
- Position remains
- Trailing stops may not execute during maintenance
- Resume after maintenance
Recommendation: Close if maintenance more than 30 minutes
During Maintenance:
What happens:
- Trading halted
- API unavailable
- Bot cannot execute
- Positions frozen
Your bot:
- May show "API Error"
- Cannot close positions
- Cannot adjust stops
- Stuck until exchange back
Risk: Price can move during maintenance
Can't exit even if wanted to
After Maintenance:
Exchange back online:
Your actions:
1. Check API connection
2. Verify bot status
3. Review position (if had one)
4. Check if stops need adjustment
5. Resume or restart bot
Bot automatically:
- Reconnects to API
- Resumes monitoring
- Re-establishes stops
- Continues trading
Best Practices:
✓ Subscribe to exchange announcements
✓ Enable maintenance notifications
✓ Close positions before long maintenance
✓ Pause bot during maintenance
✓ Restart/resume after it's back
✓ Keep some capital on multiple exchanges
Performance Questions
What's a realistic win rate target?
Trailing stop strategies typically achieve:
Excellent: 65-75% win rate
Characteristics:
- Very well optimized parameters
- Perfect market conditions
- Excellent entry timing
- Proper risk management
Realistic? Achievable but hard to sustain
Most traders: 60-70% range
Good: 55-65% win rate
Characteristics:
- Well-configured strategy
- Good market conditions
- Decent entry timing
- Solid approach
Realistic? Yes, achievable consistently
Target for most traders
Acceptable: 50-55% win rate
Characteristics:
- Basic strategy
- Mixed market conditions
- Room for improvement
- Still can be profitable if wins > losses
Realistic? Minimum for profitability
Need large avg win vs avg loss
Concerning: Less than 50% win rate
Characteristics:
- Poor configuration
- Wrong market conditions
- Need strategy review
Realistic? Not sustainable
Requires immediate optimization
Important Caveat:
Win rate alone doesn't determine profitability!
Example A (70% wins but unprofitable):
Avg Win: +5%
Avg Loss: -10%
Win Rate: 70%
Expected Value: -0.5% (LOSING!)
Example B (45% wins but profitable):
Avg Win: +15%
Avg Loss: -5%
Win Rate: 45%
Expected Value: +4% (WINNING!)
What matters:
Win Rate × Avg Win > Loss Rate × Avg Loss
Realistic Targets by Strategy:
Conservative (7-10% trail):
Expected Win Rate: 60-70%
Lower frequency, higher quality
Moderate (5-6% trail):
Expected Win Rate: 55-65%
Balanced approach
Aggressive (2-4% trail):
Expected Win Rate: 50-60%
More trades, more whipsaws
Focus on:
- Overall profitability (ROI)
- Risk-adjusted returns (Sharpe ratio)
- Profit factor (wins $ / losses $)
- Win rate is just one metric
Success Metric
Aim for 55-65% win rate with average wins being 2-3x larger than average losses. This combination produces consistent profitability.
How long should I hold positions?
There's no fixed hold time - positions close when:
- Trailing stop triggers
- Take profit hit
- Initial stop triggered
- You manually stop bot
Typical Hold Times by Timeframe:
1-hour timeframe:
Typical: 6-24 hours
Short trades: 2-4 hours (stop triggered)
Long trades: 2-5 days (strong trend)
Factors:
- Smaller moves
- Faster reversals
- More frequent trades
4-hour timeframe:
Typical: 1-5 days
Short trades: 12-24 hours
Long trades: 1-2 weeks
Factors:
- Moderate moves
- Balanced holding
- Good risk/reward
Daily timeframe:
Typical: 3-14 days
Short trades: 1-3 days
Long trades: 2-4 weeks
Factors:
- Larger moves
- Longer trends
- Best profit potential
Factors Affecting Hold Time:
Market Volatility:
High volatility:
- Stops trigger faster
- Shorter holds
- More whipsaws
Low volatility:
- Longer holds
- Slower moves
- Fewer triggers
Your Trailing %:
Tight trail (3%):
- Shorter holds
- Triggers faster
- Lock profit quickly
Wide trail (10%):
- Longer holds
- Survive pullbacks
- Ride full trend
Market Conditions:
Strong Trend:
- Longer holds
- Trailing rarely triggers
- Activation + long ride
Choppy Market:
- Shorter holds
- Stop triggers often
- Quick in and out
Analysis of Your Holds:
Review your trades:
Winners:
Avg Hold: 5.2 days
These are good - rode trend
Losers:
Avg Hold: 1.3 days
Good - failed quickly, stopped out
Insight:
Winners hold 4x longer
Letting winners run is working
Optimization:
If holds too short:
→ Widen trailing stop
→ Higher activation
→ Longer timeframe
If holds too long:
→ Tighten trailing stop
→ Add take profit
→ Lower activation
No Fixed Target
Hold time should be determined by the market, not by arbitrary time targets. Let your trailing stop and take profit do their jobs - they'll exit when appropriate.
Should I use the same parameters for all assets?
No! Different assets need different parameters.
Why:
BTC daily volatility: 3-5%
DOGE daily volatility: 10-15%
Same 5% stop:
- Good for BTC (normal)
- Too tight for DOGE (constant whipsaws)
Must adjust for each asset
Asset-Specific Guidelines:
Bitcoin (BTC):
Characteristics:
- Moderate volatility
- High liquidity
- Clear trends
- Benchmark asset
Parameters:
Trailing: 5-7%
Activation: 10-12%
Initial Stop: 5-6%
Take Profit: 25-30%
Ethereum (ETH):
Characteristics:
- Similar to BTC
- Slightly more volatile
- Tech-driven moves
Parameters:
Trailing: 5-7%
Activation: 10-12%
Initial Stop: 5-7%
Take Profit: 25-35%
Large-cap Altcoins (e.g., SOL, ADA):
Characteristics:
- Higher volatility
- Good liquidity
- Momentum-driven
Parameters:
Trailing: 7-10%
Activation: 12-15%
Initial Stop: 7-8%
Take Profit: 30-40%
Small-cap Altcoins:
Characteristics:
- Very high volatility
- Lower liquidity
- Pump and dump risk
Parameters:
Trailing: 10-15%
Activation: 15-20%
Initial Stop: 10-12%
Take Profit: 40-60%
Stablecoins/Forex:
Characteristics:
- Very low volatility
- Tight ranges
Parameters:
Not suitable for trailing!
Use grid bot instead
Testing Process:
For each new asset:
1. Check 30-day volatility
High volatility → Wider stops
2. Backtest standard parameters
Starting point: 5% trail, 10% activation
3. Adjust based on results
Too many whipsaws → Widen
Missing peaks → Tighten
4. Paper trade adjusted settings
Verify in real-time
5. Deploy with confidence
Start small, scale up
Creating Asset Profiles:
BTC Bot:
Name: BTC-Conservative-5%-Trail
Trailing: 5%
Activation: 10%
DOGE Bot:
Name: DOGE-Volatile-12%-Trail
Trailing: 12%
Activation: 18%
Params optimized for each asset
Don't use one-size-fits-all
One-Size-Fits-None
Using the same parameters across all assets is a common mistake that leads to underperformance. Take time to optimize for each asset's unique characteristics.
Risk Management
How much capital should I allocate per bot?
Professional Approach:
Total Capital: $10,000 example
Conservative Allocation:
Per Bot: 20-30% max
Example: $2,000-$3,000 per bot
Allows: 3-5 bots running
Reserve: 10-20% for opportunities
Risk: Lower
Diversification: Good
Moderate Allocation:
Per Bot: 30-40% max
Example: $3,000-$4,000 per bot
Allows: 2-3 bots running
Reserve: 10% for adjustments
Risk: Medium
Diversification: Moderate
Aggressive Allocation:
Per Bot: 40-50% max
Example: $4,000-$5,000 per bot
Allows: 2 bots max
Reserve: Minimal
Risk: Higher
Diversification: Limited
Example Portfolio:
Total: $10,000
Bot 1 (BTC Conservative): $3,000 (30%)
Bot 2 (ETH Moderate): $2,500 (25%)
Bot 3 (ALT Aggressive): $2,000 (20%)
Reserve (Opportunities): $1,500 (15%)
Emergency Fund: $1,000 (10%)
Diversified across:
- Different assets
- Different risk levels
- Different strategies
- With safety reserves
Scaling Strategy:
Phase 1 (Testing):
Allocate: 10-20% of capital
Duration: 1-2 weeks
Goal: Validate strategy
Phase 2 (Confidence Building):
Allocate: 30-40% of capital
Duration: 1 month
Goal: Confirm consistency
Phase 3 (Full Deployment):
Allocate: Up to 50% per bot
Duration: Ongoing
Goal: Optimize returns
Risk Rules:
Never:
❌ 100% in one bot
❌ All capital deployed at once
❌ No emergency reserve
❌ Overleverage
Always:
✓ Diversify across assets
✓ Keep 10-20% reserve
✓ Start small, scale up
✓ Have emergency exit plan
What if I lose money?
Losses are part of trading:
Perspective:
✓ No strategy wins 100%
✓ Expect 35-45% losing trades
✓ Individual losses don't matter
✓ Overall profitability matters
Acceptable Losses:
Per Trade: 5% or less (initial stop)
Per Month: Less than 10% of capital
Overall Drawdown: Less than 20-25%
If within these ranges:
→ Normal variance
→ Keep following strategy
→ Don't panic
Warning Signs:
🚩 Losing more than 60% of trades
🚩 Average loss > Average win
🚩 Drawdown more than 30%
🚩 Consistent monthly losses
🚩 Larger losses than backtested
If experiencing these:
→ Stop trading
→ Review strategy
→ Analyze what changed
→ Optimize parameters
→ Re-backtest
→ Paper trade again
Recovery Plan:
After losses:
1. Stop and Review (1-3 days)
- What went wrong?
- Market changed?
- Parameters off?
- Bad luck vs bad strategy?
2. Analyze Trades
- Review each losing trade
- Find patterns
- Identify mistakes
- Learn lessons
3. Adjust Strategy
- Modify parameters
- Backtest changes
- Paper trade
- Verify improvements
4. Resume with Caution
- Start with smaller capital
- Monitor very closely
- Scale up slowly
- Rebuild confidence
Psychological Management:
Do:
✓ Accept losses as normal
✓ Focus on process, not results
✓ Trust backtested strategy
✓ Keep emotions in check
✓ Learn from mistakes
Don't:
✗ Panic and stop everything
✗ Revenge trade
✗ Ignore risk management
✗ Chase losses
✗ Abandon proven strategy
When to Give Up:
Consider stopping if:
- Consistently losing for 3+ months
- Strategy fundamentally broken
- Can't handle the stress
- Better opportunities elsewhere
- Market conditions permanently changed
Otherwise:
- Stay disciplined
- Follow your plan
- Accept normal variance
- Let probability work
Remember
If your backtested strategy showed 60% win rate, expect to lose 40% of trades. This is normal. What matters is that your wins are larger than losses and you're profitable overall.
Getting Started
What's the first thing I should do?
Step-by-Step Launch:
1. Learn (Week 1)
Actions:
→ Read all documentation
→ Understand trailing stops
→ Learn parameters
→ Watch tutorials
→ Study examples
Goal: Understand before trading
2. Backtest (Week 2)
Actions:
→ Create test strategies
→ Backtest on 6 months data
→ Test different parameters
→ Analyze results
→ Find what works
Goal: Validate profitability
3. Paper Trade (Weeks 3-4)
Actions:
→ Deploy top strategy in demo
→ Monitor for 2 weeks minimum
→ Compare to backtest
→ Watch how it behaves
→ Verify it works in real-time
Goal: Confirm real-world performance
4. Small Live Deploy (Week 5)
Actions:
→ Start with 20-30% capital
→ Single bot only
→ Monitor very closely
→ Document everything
→ Learn from experience
Goal: Gain live experience
5. Scale Up (Weeks 6-8)
Actions:
→ If profitable, add capital
→ Add second bot
→ Different asset
→ Diversify
→ Optimize continuously
Goal: Build portfolio
Critical First Steps:
DO NOT:
❌ Jump straight to live trading
❌ Use full capital immediately
❌ Skip backtesting
❌ Ignore paper trading
❌ Follow others blindly
DO:
✓ Learn thoroughly
✓ Test extensively
✓ Start small
✓ Scale gradually
✓ Stay disciplined
Where can I get more help?
Resources:
Documentation:
- Introduction - Basics
- Getting Started - Configuration
- Backtesting - Testing
- Deploying - Going live
- Monitoring - Tracking
- Troubleshooting - Issues
Community:
- Discord/Telegram groups
- Forum discussions
- User strategies shared
- Live help from community
Support:
- Help center articles
- Video tutorials
- Email support
- Live chat (if available)
Learning:
- Strategy examples
- Parameter guides
- Market analysis
- Best practices
Final Tips
Keys to Success
1. Be Patient
- Good entries take time
- Not every day is tradable
- Let strategy work
- Don't force trades
2. Stay Disciplined
- Follow your plan
- Trust backtested strategy
- Don't interfere
- Accept normal losses
3. Keep Learning
- Analyze every trade
- Optimize continuously
- Learn from mistakes
- Stay updated
4. Manage Risk
- Diversify assets
- Keep reserves
- Use proper stops
- Never overleverage
5. Think Long-term
- Focus on months, not days
- Build consistent process
- Compound gains
- Sustainable approach
Remember: Successful trailing bot trading is about consistent execution of a proven strategy, not about perfect trades every time.
Good luck with your trading! 🚀