Stop Loss is a bot feature that allows you to close the trading bot and sell the base currency when the price reaches the stop loss condition. This can be used to limit the losses of the base currency value decrease and exit the market automatically.
How does Stop Loss work?
When enabling Stop Loss, you need to enter the price when it should be executed. When triggered, the following consecutive events occur:
All open bot orders are canceled.
The base currency used by the bot is sold at the best available price for quote currency (for example, if a bot operates ETH/USD pair, all ETH will be sold for USD).
The bot is removed from the list of active bots, and its data is added to the History tab.
Here is an example: If Stop Loss is enabled for ETH/USD pair at 160.00 USD. The bot will be closed, and all ETH is sold when the price reaches 160.00 USD as intended by the condition.
Features of Stop Loss:
Stop Loss can be set even above the Lower limit price (the conditional price can be higher than the Lower Price and placed inside the grid).
Stop Loss is permanent if Trailing Up is disabled.
If Trailing Up is enabled, then Stop Loss becomes dynamic. It will follow the Lower limit price at a fixed interval whenever the grid is moved.
📑 Please note: The value you enter in the stop loss is a price condition where the stop loss is executed but not the exact price. The base currency will be sold at the best available price via the market order. As a result, the actual price may be different.
Enabling Stop Loss for an active bot
To activate Stop Loss for an active bot, select the bot you need; it will be highlighted blue. In the panel on the right, where you can see detailed information about the bot's performance and change some settings, the "Modify" button will appear.
You can enable the Stop Loss function and set the parameters you need by clicking on this button. In the settings, enter the price, and then click [Preview].
You can then take another look at all your settings before confirming them. To confirm the changes, click the [Confirm] button.
Want to know more about the Bitsgap's bot? - Crypto trading bot