Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
hithere

What is the benefit of having an upper stop in the example that you gave? I can understand having a lower stop because that protects your losses, but the 2% upper stop needlessly limits your gains, correct, or am i missing something? Thank you!
 

Last edited 4 months ago by hithere
TrailingCrypto

Limiting gains will also limit the loss. consider the scenario that price went upto 2.5% and your trailing offset is 1% then it will sell at 1.5% and having a fixed upper target means the moment it crosses that you are closing the trade with 2% profit in your example. Difference is same as using Take profit order vs using Trailing stop order. I hope this clarifies your query.

2
0
Would love your thoughts, please comment.x
()
x