Today, we’re going to go over how to set up and customize risk controls on your AutoTrader strategy, so that you can lock in gains and protect your capital against downside risk.
Setting Up Take-Profit and Stop-Loss Conditions on AutoTrader
First, we’re going to pick a strategy. In this case, we’re going to pick an Optimism token strategy that’s bullish, longer term oriented, and with a balanced risk tolerance.
Let’s start with an investment of 200 USDT.
Before we start our strategy, let’s click on Risk Control.
You’ll notice that you have two options, take profit / stop loss, and a trailing stop.
Let’s try out the first option, and move to trailing stops after.
Here, you can decide two points at which the strategy stops – when you reach a certain percentage profit, known as the take profit condition, and when you reach a certain loss, called the stop loss condition.
The take profit condition is designed to lock in profits, while the stop loss condition is designed to prevent you from losing too much money when the market turns against you in extreme cases.
We always recommend that you set a stop loss because crypto markets are volatile and there are always certain situations in which unpredictable events can cause the market to crash.
In this case, we set the take profit condition at 100 USDT, or 50% of the initial principal. We also set the stop loss condition at 100 USDT, also 50% of the initial principal.
And now we’re done. We go back to the original page, and start our strategy. After starting our strategy, we can go to the dashboard, and double-check our take profit and stop loss conditions, which are on the upper right-hand side.
Setting Up a Trailing Stop on AutoTrader
Now let’s try this again with a trailing stop.
In this case, we’re going to go with a Sui strategy with 200 USDT.
A trailing stop moves together with the market, and stops the strategy after your return drops a certain amount from its peak.
For example, here we set a 100 USDT value, meaning that if your return hits 200 USDT and peaks at that level, but then drops 100 USDT, the strategy will execute a trailing stop order to make sure you preserve the remaining 100 USDT gain.
Typically you would set a trailing stop condition if you think the market is going to go up generally, but are uncertain if it will last or not, and want to lock in your gains.
After we start our strategy, we can go back to the dashboard and double-check the settings, which are in the upper right hand corner of our strategy.
And that’s it, we’ve covered how to set up advanced risk control settings on AutoTrader.
For more tutorials, click here!
Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at support@btse.com or on X @BTSE_Official.
Disclaimer: BTSE blog content is intended solely to provide varying insights and perspectives. It does not constitute financial, legal, or investment advice and should not be relied upon as such. The views expressed are not necessarily those of BTSE. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Trading involves substantial risk due to market volatility, and past performance is not indicative of future results. Always trade with caution and consider seeking advice from a qualified professional before making any financial decisions.
