Using Stop Loss in Trading Bots

The Stop Loss feature is a critical tool for minimizing potential losses in trading bots. It allows you to automatically exit the market when the price reaches a predefined level, ensuring that losses are limited if the price moves against your strategy.

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In this guide, you’ll find:

1. What is Stop Loss?
2. Key Features of Stop Loss
3. How to Activate Stop Loss

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What is Stop Loss?

Stop Loss is designed to protect your investment by closing your trading bot when the market price reaches a specific condition. This feature ensures you exit the market automatically, limiting your losses during unfavorable price movements. When Triggered:

1. All open orders from the bot are canceled.
2. The bot:
   • GRID Bot: Sells the base currency at the best available market price.
   • BTD Bot: Buys back the base currency using the quote currency.
3. The bot is moved to the Bot History tab, and its activity stops.

NoteThe Stop Loss executes via a market order at the best available price. The actual execution price may differ slightly from the trigger price due to market conditions.

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Key Features of Stop Loss

1. Flexible Placement:
   • Stop Loss can be set inside the grid range.
   • Orders beyond the Stop Loss level will remain unfilled.
2. Static vs. Dynamic Stop Loss:
   • Static Stop Loss:
     • Permanent when Trailing features are disabled.
   • Dynamic Stop Loss:
     • When Trailing Up (GRID Bot) or Trailing (BTD Bot) is enabled, Stop Loss follows the grid at a fixed interval whenever it moves.
3. Customizable Behavior:
   • You can disable Trailing Stop Loss for GRID Bots.
   • In this case, the bot will trail upward when the price exceeds the grid’s high range, while the Stop Loss remains fixed.

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How to Activate Stop Loss

For a New Bot:

1. During bot creation, go to the Manual Adjustment section.
2. Toggle on the Stop Loss option.
3. Enter the desired trigger price.

For an Active Bot:

1. Select the bot you want to modify (highlighted in blue).
2. Click the [Bot Actions] button or the three-dot menu on the bot’s panel.
3. Choose the [Modify Bot] option.
4. In the Manual Adjustment section:
   • Enable the Stop Loss feature.
   • Enter the desired trigger price.
5. Review your settings and click [Continue].
6. Confirm your adjustments by clicking [Confirm].

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Need Assistance?

If you encounter any issues or have questions, don’t hesitate to contact the Bitsgap Customer Support Team.