3. Trailing take profit deal completed with a loss

A
Written by Andrew
Updated 2 months ago

If trailing option is enabled - take profit order executes via API at market price.

If Binanсe API is overloaded your order could be executed with a delay.
While an order is in the process of execution - market price could change against a position.
If order will be executed after price change - there is a risk that a deal could be closed with a loss.

The stability and speed of exchange's API software depend only on the exchange.
JetBot platform can't affect stability and speed of exchange's API software.

Such cases happen very seldom and usually in case of combination of next 3 factors:
- immediate and significant market price change against your position
- high loand on the exchange API software at this moment
- you use low take profit %

If you use low take profit target (for example 0.5%-0.2%) - this risk is higher.
If you use 1% take profit or higher - this risk is much lower.

You can decrease risks of such issue by using take profit 1% or higher.

 

You also can avoid such cases by disabling trailing option.

If trailing option is disabled - your take profit will be executed by limit order, which is placed on the exchange in advance. It solves a risk of order execution with a delay.

To use trailing or not to use?

From our platform statistic - such cases happen seldom and even if this happens - a profit from other successful trailing deals is higher than a loss from 1 negative deal and successful deals cover it.
Due do these facts many users accept a risk of order execution with a delay and continue to use trailing because of benefits and performance of enabled trailing.

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