Smart Orders: Stop Loss including optional Cooldowns (Time and Candle Close) (NEW)
Overview
Altrady's new stop loss options are available as exits for Smart Orders from v4.4 onward. Combined with our existing Stop Loss options, they are tailored to:
Suit a variety of trading styles
Minimize potential losses when markets do not recover during cooldown periods.
Contents
Long and Short positions in this article
Stop Loss components
Specifying a Stop Loss
Once Placed
Stop Loss Combinations in Action
Example 1. 10m Time Cooldown with Emergency Stop
Example 2. 15m Candle Close Cooldown with Emergency SL and TSL:Follow Price
Implementation and Use
A note on terminology in this article, referencing long and short positions.
Long Positions: Buy coins before selling them. Stop Loss is set below the entry price
Short Positions: Sell coins before buying them. Stop Loss is set above the entry price.
In this article: "Long (short) positions" where "long" refers to the first descriptor and "short" to the descriptor in parentheses, e.g. a Stop Loss is placed below (above) the entry price.
Stop Loss components
Enable Stop Loss in the Trading widget
Main Stop Loss
Types: Market or Limit.
The selected type applies to the main Stop Loss, Stop Loss after cooldown, and Trailing Stop Loss, but not to an Emergency Stop Loss, which is always a Market(1) order.
Stop Loss Cooldown (Optional)
Function: Delays the execution of a Stop Loss to potentially avoid closing a position during short-term price dips (rises).
Types
Timer: Delays based on a set timeframe. The Stop Loss re-evaluates the price after the timer expires.
Candle Close (NEW): Waits for the close of a specified candle timeframe before comparing the current price to the Stop Price.
Emergency Stop Loss (NEW)
Trigger: Activated during a cooldown if the price continues to fall (rise) to a specified Emergency Stop Price, executing a Market(1) order immediately to close the position.
Protection
Function: Forms of Trailing Stop Loss that adjust the Main Stop Price as the position moves into profit, aiming to reduce downside risk while allowing for profit growth.
Types: Three, each adjusting the Main Stop Price based on the position's profitability.
Specifying a Stop Loss
After setting up the entry order at the top of the Trading widget, turn on the Stop Loss section.
Main Stop Loss
Stop Loss type
Market: Once the Stop % or price is reached, Altrady will place a Market order on the exchange, that will exit immediately at the best available prices in the Order Book.
Limit: allows the trader to choose a Limit price (for a Sell, this would be the lowest price at which the order will sell, once the Stop price is reached). This can be useful when trading markets with low liquidity/thin Order Books, where there is a chance that a larger order might sell at a wide range of prices when a Stop Market Order is used.
With a Stop Limit order, the Limit Order is entered in the Order Book when the Stop price is reached. If the Limit price is better than the current price, then the order can be partly or fully filled at the best available prices.
If the order is partially filled, the Limit order for the unsold coins will remain in the Order Book until the price is reached.
Stop Price
The price at which the Stop Loss will be triggered. The price must be greater than zero.
Select a price using:
the eyedropper, to pick a price on the chart
Type a price
Drag the price handle for the Stop Loss on the chart
Select a Percentage preset
Or enter a percentage value. The Stop Loss percentage value must be between 0% and -99%.
Limit Price (only for Stop Limit Stop Losses)
Once the Stop price is reached, a Limit order is placed at the specified price.
A price can be entered using the same 4 methods as for Stop Price, above.
Stop Loss Cooldown (optional)
To use a Stop loss cooldown, tick the box.
Choose a type: Time or Candle Close (as defined above)
Time: choose a timer duration
Candle Close: Choose a Candle timeframe (a.k.a. Candle Resolution)
Emergency Stop Loss (optional with Cooldown)
If a Cooldown is added, an Emergency Stop Loss is optionally available. (Defined above)
To enable, tick the Emergency SL box.
The Emergency SL must be further from the entry price than the Main Stop Loss Price i.e. for a long position the ESL must be lower than the Main Stop Price. For short position, the ESL must be higher than the Main SL. If it is not, the order cannot be placed. If this occurs for a Signal Bot Position, the position will not open.
Select a price for the Emergency SL using:
the eyedropper, to pick a price on the chart
Type a price
Drag the price handle for the Emergency Stop Loss on the chart
Select a Percentage preset
Or enter a percentage value. The Emergency Stop Loss percentage value must be between 0% and -99%.
Protection: Trailing Stop Losses.
Protection is optional and can be used with or without a Cooldown and an Emergency Stop Loss.
We have extensive documentation covering all aspects of our Trailing Stop smart orders:
Smart Orders: Trailing Stop Loss comparison
Smart Orders: Trailing Stop Loss: Average Entry and Follow Take Profit
Smart Orders: Trailing Stop Loss: Follow Price
When a Cooldown and Trailing Stop loss are both used, once Trailing is activated, the Main Stop Loss is no longer used and the Stop price becomes the trailed Stop Price. The cooldown will function in the same way as previously described, but using the trailed Stop price.
Placing and viewing an Order
The order shown here is used for the following order placement example. It includes: Candle CLose Cooldown, Emergency SL, Trailing Stop Loss>Follow Price (as well as one entry and one Take Profit order)
Note. If Order Confirmation is enabled, the Stop Loss Details are included in the Confirmation dialog
Once the order is placed, you will see the following details on the chart:
Main Stop Loss
Emergency Stop Loss
Trailing Stop Loss> Follow Price (blue line for the trigger price)
(Trailing Stop Loss>Entry Price and Trailing Stop Loss>Follow Take Profit are not shown on the chart.)
The orders will appear in My Orders widget (Open):
Main Stop Loss, Limit or Market. Note that only the Limit Price is shown in My Orders. To see the Stop Price, check the chart.
Cooldown. The Main Stop Loss will have a status of Pending.
When a Time Cooldown is triggered and the timer starts, the Stop Loss Status will change to Cooling Down.
If the Current Price is above (below) the Stop Price at the end of the cooldown period, the status will revert to Pending.
A Candle Close Cooldown is not assessed until the candle closes. At this point, if the Candle Close price is below (above) the Stop Price, the Stop Loss is triggered.
Stop Loss Combinations in Action
Example 1. 10m Time Cooldown with Emergency Stop Loss
| Setting | Value |
|---|---|
| Entry Price | 51.0 |
| Initial SL (market) | 40.0 |
| Cooldown enabled? | y |
| Cooldown type | Time |
| Cooldown duration | 10m |
| Emergency SL enabled? | y |
| Emergency SL price | 35.0 |
Data for this example
| Time | current price | Main SL | Emergency stop | Stop Loss checks | Result | Action |
|---|---|---|---|---|---|---|
| 1:00 | 52 | 40 | 35 | |||
| 1:05 | 51 | 40 | 35 | entry filled | ||
| 1:10 | 45 | 40 | 35 | Check if current price < Stop Loss | No | |
| 1:15 | 41 | 40 | 35 | Check if current price < Stop Loss | No | |
| 1:20 | 45 | 40 | 35 | Check if current price < Stop Loss | No | |
| 1:25 | 42 | 40 | 35 | Check if current price < Stop Loss | No | |
| 1:30 | 39.9 | 40 | 35 | Check if current price < Stop Loss | yes, start Cooldown timer: 10m, check at 1:40 | Timer starts |
| 1:35 | 38.5 | 40 | 35 | Check if current price < Emergency Stop | while timer runs, check energency SL | |
| 1:40 | 42 | 40 | 35 | Check if current price < Stop Loss | 10m timer up, CP < Stop Price? NO. | Timer resets |
| 1:45 | 39.8 | 40 | 35 | Check if candle close < Stop price | yes, start Cooldown timer: 10m, check at 1:55 | Timer starts |
| 1:50 | 36 | 40 | 35 | Check if current price < Emergency Stop | while timer runs, check energency SL | |
| 1:55 | 35.5 | 40 | 35 | Check if current price < Stop Loss | 10m timer up, CP < Stop Price? YES. | Place Market order |
Graphical representation for this example
Description
| Action | Active SL price (depending on cooldown) | Comments |
|---|---|---|
| Once the entry has filled, the Initial/Main Stop Loss is active, checked each time the current price changes | 40 | |
| The Emergency SL is checked whenever the cooldown is activated | 40 | |
| In this example, the price reaches Stop price of 40, twice. The first time at 1:30. The 10m cooldown timer starts, check again at 1:40 | 40 | Cooldown timer starts |
| In the meantime, the current price is compared with the Emergency Stop price each time current price changes. | 35 | Emergency SL active during cooldown |
| The Emergency SL protects the position from major loss while the Cooldown timer is active | 35 | Emergency SL active during cooldown |
| At 1:40, the price is above the Stop price, and the timer resets. No cooldown is active. | 40 | Cooldown Timer resets |
| At 1:45 the SL cooldown is again activated, to be checked again at 1:55. | 40 | Cooldown timer starts |
| Emergency SL is checked while the cooldown timer is running. | 35 | Emergency SL active during cooldown |
| At 1:55 the 10m timer finishes, current price is checked (39.8) and is beliw the Stop price (40). | 40 | |
| Stop Loss is triggered, any TPs are cancelled, Market order is placed on the exchange. | 40 | Market order placed, position closed |
Example 2. 15m Candle Close Cooldown with Emergency Stop Loss and Trailing Stop>Follow Price
| Setting | Value | Percentage |
|---|---|---|
| Entry | 51 | |
| Initial SL (Market) | 40 | |
| Cooldown enabled? | y | |
| Cooldown type | Candle Close | |
| Candle Timeframe | 15m | |
| TSL Type | Follow Price | |
| TSL trigger | 54 | 5.9% |
| TSL Stop | 52 | 3.7% |
| Emergency SL enabled? | y | |
| Emergency SL Price | 38 |
Data for this example
| Time | current price | Main SL | TSL trigger | TSL stop | Emergency stop | Candle Close Stop Price | Check | Stop Loss triggered? |
|---|---|---|---|---|---|---|---|---|
| 1:00 | 52 | 40 | 54 | 52 | 38 | 40 | ||
| 1:05 | 51 | 40 | 54 | 52 | 38 | 40 | entry filled | |
| 1:10 | 50 | 40 | 54 | 52 | 38 | 40 | ||
| 1:15 | 49 | 40 | 54 | 52 | 38 | 40 | Check if candle close < Stop price | No |
| 1:20 | 51 | 40 | 54 | 52 | 38 | 40 | No | |
| 1:25 | 55 | 55 | 53 | 38 | 53 | TSL triggered | No | |
| 1:30 | 57 | 57 | 54.9 | 38 | 54.9 | Check if candle close < Stop price | No | |
| 1:35 | 58 | 58 | 55.9 | 38 | 55.9 | Check if current price < emergency Stop | No | |
| 1:40 | 55 | 58 | 55.9 | 38 | 55.9 | Check if current price < emergency Stop | No | |
| 1:45 | 56 | 58 | 55.9 | 38 | 55.9 | Check if candle close < Stop price | no | |
| 1:50 | 40 | 58 | 55.9 | 38 | 55.9 | Check if current price < emergency Stop | No | |
| 1:55 | 37.9 | 58 | 55.9 | 38 | 55.9 | Check if current price < emergency Stop | yes, place market order to close position | |
| 2:00 | 30 | 58 | 55.9 | 38 | 55.9 | Check if candle close < Stop price |
Graphical representation for this example
Description
| Action | Active SL price | Comments |
|---|---|---|
| Once the entry has filled, the Initial/Main Stop Loss is active, checked at candle close | 40 | Iniitial SL |
| This continues until the TSL is activated, when the price = 54.0 | 52 | TSL triggered, takes over from Initial SL |
| The main SL is cancelled and the TSL Stop takes over, checked at Candle close | 53 | TSL Stop price increases |
| The Emergency SL is always active, and if reached, will trigger, regardless of candle close | 53 | |
| In this example, the price reaches 35 around 01:55, and Emergenecy SL is triggered | 35 | |
| The Emergency SL protects the position from major loss between candle closes. | 35 | Market order placed, position closed |
Implementation and Use
These features provide traders with advanced tools for managing their positions more effectively, especially in volatile markets. By offering customizable stop loss settings, Altrady enables users to tailor their risk management strategies to fit their individual trading styles and preferences. The introduction of cooldown options and emergency stop loss settings offers a nuanced approach to handling rapid market movements, giving traders the opportunity to pause and reassess their positions without immediately exiting at a loss. This flexibility is particularly valuable in the fast-paced world of cryptocurrency trading, where prices can fluctuate wildly in short periods.
The Protection options further enhance this suite of tools by enabling traders to secure profits while still allowing room for additional gains. Through dynamic adjustments of the stop loss level based on market performance, traders can protect their investments from significant downturns while capitalizing on upward trends. This approach not only maximizes potential returns but also minimizes the emotional stress associated with the decision-making process during volatile market conditions.
In conclusion, Altrady's new stop loss features, including Cooldowns and Emergency Stop Loss, combined with the innovative Protection options, represent a significant advancement in trading technology. These tools empower traders to make more informed, strategic decisions, reduce potential losses, and optimize profitability. By integrating these features into their trading strategies, Altrady users can navigate the complexities of the cryptocurrency markets with greater confidence and control.
(1) Market orders: Please note that not all exchanges or markets support market orders. In such scenarios, Altrady will place a Limit order at a price appoximately 10% above (below) the current market price to act similarly to a market order.
Moreover, some exchanges may accept what appears to be a market order but will process it as a Limit order, typically setting it 10% above (below) the current market price to prevent slippage beyond 10%. This approach may leave some coins unsold since these pseudo-market orders created by the exchange are cancelled if they're not immediately filled, potentially leaving part of the order unexecuted.
In contrast, when Altrady places a Limit order as a substitute for a Market order, if it is not immediately filled, the order will stay open on the exchange until fully filled.
Updated on: 12/02/2024
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