Take profit and stop loss exits

A crypto trading bot can only work with proper exits signals.
Let's see how we can automate them with Kaktana.

Basic stop loss

The goal of a stop-loss is to stop losing money (yay!)
We're going to decide that we don't want to lose more than X % of our trade.
Too many traders forget to use them, and lose a significant part of their capital whenever the prices dips a bit (which happens every week with cryptocurrencies)

stop loss visualisation
The green lines here represent our stop loss orders.
Adding a stop loss sell condition

For a 2% stop loss, we want to sell when : [LAST TRADE's PRICE] < [BUY PRICE * 0.98]

stop loss condition img-fluid

To create the "LAST" value, click on :
  • Type -> Price
  • Price -> Last

And to create the "BUY PRICE * 0.98" value, click on :
  • Type -> Price
  • Price -> Buy price
  • Operation -> *
  • Constant -> 0.98

Your configuration should look like this:
buy price * 0.98 value

Basic take profit

The goal of a take profit condition is to secure your profits.
We want to sell whenever we reach a certain target. In this case, we're going to set it up to 2%.

Adding a take profit sell condition

For a 2% take profit, we want to sell when : [BUY PRICE * 1.02] < [LAST TRADE's PRICE]

take profit condition

The steps involved to fill the 2 values are exactly the same as before

How it should look like in the end

Those conditions will trigger a sell order whenever our price drops more than 2% or gains more than 2%.

our scalping conditions

From now on, we can complexify our sell orders to make more precise and clever sell orders, like what we're doing in our RSI strategy or on our turtle strategy.

Trade while you sleep

Skyrocket your returns on the first 100% configurable crypto trading bot.

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