Fine-tune Your Trading Strategies by Using Advanced Order Types in Crypto Trading

According to a recent report, over 10 crores Indians hold cryptocurrencies and you know, this number may go even higher this season. However, crypto trading is fraught with many kinds of risks, and up-down, the craze of cryptocurrency trading is attracting many of them. In order to get long-term benefits from crypto trading, considering the right strategies and tools can make trading safe and profitable.

There are many different types of tools and advanced order types that provide by the best crypto trading platforms which can make crypto trading fun. Deciding an appropriate time to exit any trade is as important as determining the time of entering a position in all types of trading.

If you are a pro trader, then your trade entries and exits might require a bit of extra tinge. In many cases, basic order types can cover most of your trade execution needs, but if the order is complex, then there are a host of advanced order types which you may choose to earn better profits. Some of the popular order types which traders may use involve Take Profit, Trailing Take Profit, OCO order, bracket order, Trailing stops, and more.

Trailing Stop order

One such order type that is used by exert traders is Trailing order. This order type allows one to set a limit target or moving stop price. The target price moves based on the price increase. Trailing stop order is a popular trading strategy by which the trader can sell the asset once its price reaches below the pre-specified price. So, this type of order is used to buy or sell assets if they move in a direction which a trader considers unfavorable.

This is a type of conditional order which uses a trailing amount rather than a specific stop price, to determine when to submit the market order to buy or sell. The trailing amount could be in either points or percentage, which follows the stock price as it moves up or down. Trailing stop orders provide the best and most efficient ways to manage risks. Most of the traders use these orders as a part of their exit strategy.

This is the most basic technique used for an appropriate exit point which maintains the stop-loss order at a precise percentage just above or below the market price. In volatile markets, the advanced order types are quite useful in limiting the potential losses of the traders.

Trailing Stop Buy/sell orders

Every crypto trader must have the best trading tools and strategies at their disposal. That is why using Trailing stop buy or sell order will make you earn more. The Trailing stop sell order follows the market price as it goes up and triggers a sell order if or whenever the price falls from its peak by the amount set as the trailing distance.

On the other side Trailing Stop Buy order follows the market price as it moves down, and triggers a buy order if or when the price rises from its low by the amount set as the trailing distance. As the price ofthe crypto asset falls, the order activation price is adjusted so that it is never more than a specified value or trail from the market price. If the price increases, the activation price doesn’t adjust. And, the asset will be purchased at the best price.

Example:

You want to buy BTC, but you think that it may fall in value soon. Now, you want to wait for some time to buy the asset. You also think that if the price for BTC moves up by a defined amount, say 5%, it may even move higher.

So, to help minimize the potential costs, you can set the trail to 5%. Here, your stop price will always remain 5% above the lowest price of BTC. This is all about placing a Trailing stop buy order.

Another order type that pro traders use to increase their gains whenever the price of asset moves in favorable direction is Trailing Take Profit. Let’s understand what this order type is:

Trailing Take Profit and how is it different from Trailing Stop?

Trailing take profit orders are largely used in crypto trading but they are somewhat similar to Trailing stops. So, what’s the difference between these two?

The main difference between trailing take profit (TTP) and trailing stop order is that Trailing Take profit order takes the profit in any case. Thus, they reduce the risks that might have occurred if you are considering Trailing stop alone. Trailing stop order is a type of stop loss order which automatically moves in the same direction as the asset price is moving. TTP order moves in one direction and is designed to lock in profits, and reduce/limit the losses. TTP order is bound to the maximum of Take Profit instead of just increasing or decreasing.

In the case of a long strategy, TTP moves up once the price has surpassed the previous highs and a new high is established then. And, once it moves up, it cannot move back down. Thus, it is securing profits and preventing losses. This order type allows the trade to remain open and continues to earn profit as soon as the price is moving the trader’s favor. If the price changes direction and it surpasses the previously set percentage, the order will be closed.

The best crypto trading platform like TrailingCrypto allows you to test and automate any trading scenario while using a simple and intuitive interface. Choose the trading strategy that you wish and these platforms will automate your trades. These platforms have their own crypto trading bots which monitor the market 24x7 and place trades automatically as per your set strategy.

Aim of Trailingcrypto is to Provide a Unified Trading Platform to enable user to do trading on multiple cryptocurrency exchanges from single platform. We provide many Advance Order types which is natively not available on all exchanges.