A Stop Loss by an indicator signal is a protective function that closes a deal at a loss by a market order, and is activated when two conditions are met:
- The preset filter/indicator signals are received;
- The specified minimum indent from the last order in a grid is reached. If this check is “Disabled”, then only the signal will be taken into account.
We remind you that a simple Stop Loss is triggered when a fixed price is reached (calculated based on a given percentage of the price move from the last order in the grid).
How does it work?
The bot receives a signal, for example, about a trend change (crossing the level of the Bollinger Bands or a decrease in the RSI below a critical level), or a signal about a volume change in the asset, or increased volatility is recorded, and so on.
Then the bot checks how much the current price is lower than the price of the last order in the grid, and whether the specified indent is respected. If the indent is met, then a market order is placed on the exchange, closing the deal.
Important! All market orders are subject to slippage, so the price at the time of placing the order and the price at its execution may not match.
Note. Simple Stop Loss and Stop Loss by an indicator signal work independently of each other. Whichever condition is fulfilled earlier, that Stop Loss is triggered.
How to apply it in trading?
1. Enable the “Stop by Signal” function in the editor.
2. Set the necessary parameters for automatic deal closing in the settings – minimal indent (%) and the filters.
3. Specify whether to stop the bot after executing the Stop Loss.
