Give more control to risk management with tech profit strategy Give more control to risk management with tech profit strategy:- One of the most impor
Give more control to risk management with tech profit strategy
Give more control to risk management with tech profit strategy:- One of the most important risk management tools used daily by crypto traders is tech profit orders. We all know that there is no magic formula to make the market timely but there are some strategies that traders can use to increase their profits. A thorough understanding of how to use strategies and features such as profit, stop-loss or other order types is fundamental for a trader to make the most successful trades.
If you are a beginner, it is important to know how to get out of the business profitably. Every trade you make requires an exit strategy. And, the whole point of the trade is to get out of any trade with a profit.
Now the question is how to get out of the business successfully? And, the best and easiest tool you can use is Tech Profit Order. Let us understand in depth the type of this command:
Take Profit (T / P) Order
This type of order refers to a specific price at which the trader must close an open position to make a profit. Most traders use tech profit orders along with stop loss orders to manage their open positions.
A T / P order is an automatic exit strategy based on profit and loss calculations rather than an emotional decision to sell or hold an asset. A technical analysis of potential market moments is required to place a tech profit order. In addition, this type of order is very useful if you are a trader with a short-term strategy or want to take advantage of a sudden increase in the value of the property.
Generally, T / P is the price at which the trader prefers to keep a fair amount in case of trade in favor of the trader. If it reaches a certain profit level, once a T / P order is placed, the trade will automatically close. It is a type of pending order which automatically locks the trader’s profit and allows the trader to make instant profit.
How does T / P order work?
Let’s say the trader buys XYZ for $ 5,000, and makes a profit of +10, which means he has ordered to sell BTC for $ 5,500.
For some time, BTC has been trading in the 5,000 range before rising steadily. Upon reaching 5,500 or more, your pending order with tech profit will be +10% paid, and the system will close the trade as a sales order.
Your total profit here is $ 500.
Therefore, a tech profit order is a type of pending order that a trader can use to close a profitable position after reaching a certain price.
Suppose a trader passes a long time i.e. enters a buy position by trading at 1.2880, expecting the price to rise. Now, he wants to profit from the rising market trend. So, here it puts the tech profit order higher than its entry price, say 13.280. If the asset price hits the predefined tech profit price, the position will close and the profit will be locked.
On the other hand, if a trader enters a sell position with the expectation that the value of the asset will decrease in the future, he will place a tech profit order at a lower level than the entry price. Let me tell you, it came in the market at a price of only 12,880. Now, he decides to place a tech profit order at 12.580. If the share price reaches the level of 12.580, the position is closed.
Order T / P by trading bot
Automated profit targeting and stop-loss are key features of automated crypto trading platforms. Using crypto trading bots is an effective way to manage your position. Let us understand how the Take Profit order works with trading bots. T/P orders are designed for the purpose of managing the risks where the system intercepts the bots. and opens the order as per the specified T/P terms which are basically used by the trader. Sells currency.Have met. Once the bot reaches a certain percentage you set in the T / P parameter, it stops trading by selling all the base currencies.
To activate T / P, you need to toggle the T / P option and enter% value.
Suppose you have active boat trading on ETH / USDT and you have set profit at 15%. As soon as the current fund (in USDT) reaches + 15%, BAT will automatically close all orders and sell the remaining ETH.
Why trade with tech-profit orders?
Although no one can accurately predict which deals are winning before entering. We are more likely to make overall profit by using technical profit orders. If there are many trades instead of winning trades there are losing trades.
The advantage of using T / P order is that the merchant does not have to conduct the trade manually. On the other hand, this order type is executed at the best available price. So the order of taking profit is to hedge the risk, to take profit and to stop speculating. If the trade closes, you will earn a certain amount of money on the trade.