In this article, you will learn what is a Trailing down: how it works, and what happens to the grid once it is activated.
The benefit of the Trailing Down feature is moving the bot's grid below the initial settings which allow the bot to follow the down-trending market and continue to trade even if the price went below the lower price border.
To continue to trade below the lower price border, the bot will open new buy orders using the quote currency. New orders will appear if the current price is below the lower price of a bot. Once the new buy order is filled, the top sell order gets cancelled and the new order to sell base currency will be open at the bottom of the active grid.
It will continue placing new orders until the Stop Trailing Down Price is reached. The Stop Trailing Down Price is the condition where you tell our system to stop placing new orders below this price. This price condition can be set on new and active bots.
Please note: The trailing down feature is available for Sbot bots only created no longer than 3 months ago. The trailing down is not available for Classic and Combo bots.
There are 2 more additional figures that help you to see how many coins you will need if you enable Trailing Down when creating a bot.
1) Max. balance IN shows how much of the quote currency will be released.
2) Max. balance OUT represents how much of the base currency will be needed if the price reaches the Stop trailing down level.
Let's take a look at step-by-step actions of how the Trailing Down works when activated.
It checks your balance in the quote currency for the possibility of opening a new buy order.
If the first criterion is met, it cancels the top sell order.
Then places a new buy order below the lower price, taking into account the grid step.
If the new buy order was placed above the current price, it will lead to its instant execution. This is important when you activate the trailing down on an already active bot because it will try to move your grid as soon as possible.
The purchased base currency will be used to place a new sell order below the lower price. The new order will become the new lower price of the bot.
Upper price = 54 000 USD
Lower price = 45 000 USD
Current price = 41 000 USD
Grid step = 10%
Grid quantity = 10 GRIDS
If the Trailing Down is activated, the bot will send a request to place a limit order at 43 000 USD to the exchange - that is where the buy order should be located. That order will be executed by the exchange instantly at the price of 41 000 USD as the current price is better than the price we wanted to buy for.
After the successful purchase of the base currency, the bot will cancel the sell grid at 54 000 USD and place a new one at 44 000 USD.
Please note: the feature will continue to work for as long as you have the quote currency on your available balance, and the current price is lower than your lower price of the bot by the specified percentage of the grid step.
Here's how the system calculates your Investment Change when the Trailing Down feature is enabled on Sbot.
Once you activate the Trailing Down feature and it starts moving the grids, the new quote currency goes to the quote currency in the Initial funds field.
In the meantime, the base currency from removed orders is added to the base current in the Current funds field. This way the system can keep your Investment Change readable.
💡 Be advised that the base currency that has been moved to the available balance will not be sold when you use such tools as Stop-loss, Take Profit, or if you just close the bot.