STOP LOSS TIMEOUT: how to hedge, if it is not a reversal, but short-term volatility.


Ok, be honest. Have you ever been stopped out when it really wasn’t that fair? The answer is probably yes, I mean it’s a matter of fact – cryptocurrency is extremely volatile. Volatile markets. I mean you can make a lot of money, it also means that you can lose a lot of money too. Thankfully, 3commas has an extremely awesome insurance policy to protect you from these fat finger drops there’s no telling when these things are gonna happen. What about instances like these? This is just plain unfortunate instead of just getting stopped out and missing out the gains. If you got stopped out here you would have missed out on all this rise. You’d have missed out on something that went up into the 80% range. That’s painful, that’s why people don’t want to set stops but best practice dictates you should be setting a Stop Loss! So, 3commas has a good solution for you. Here in the stop-loss area of SmartTrade there’s this wonderful button right here – Stop Loss timeout. Let’s take a look at that more extreme example. It did drop down. So I’m imagining that it would have stopped you out if you had a stop loss on. You bought in here, you bought in here and then… it did fall out low, it fell all the way to one. This effectively ate up all of the orders. We’re gonna go down to 100% dropped, a 100%. Now, question – why did the price not stay down there? Because the order book exists because there’s so many people wanting to buy, that people were prepared to buy at this price. This price, some people down here, some people down here, some people wait down here apparently some people decided just leave their (laugh) leave their orders up in the very bottom and the depths of hell! And look at that – and they got filled! What if you weren’t fat finger fishing? what if you were just holding, but you were trying to be responsible to have a Stop Loss? You would have got stopped out unless you had this on. This was a momentary stop loss. This literally happened boom in a split second. These are the kinds of things that you want to have in your trading toolkit. You want to have a stoploss timeout in your arsenal! Binance doesn’t offer this, Bittrex doesn’t offer this, no exchange offer this. no other service out there does this. This is awesomesauce! Yes. The next time you get worried about setting your stop – go and just click it. It’s not gonna hurt anything. Go ahead and have it on there, go ahead and able stop last timeout, set it to something long and you’ll thank me when you avoid one of these nightmare situations.

7 thoughts on “STOP LOSS TIMEOUT: how to hedge, if it is not a reversal, but short-term volatility.”

  1. So lets say this price does go below your SL and stays below, will your order just sell at the market price when the SL timeouts ?

  2. Stop loss timeout is one of my new mostest bestest pals. I invited him to supper next week. Thanks for introducing us

  3. Why didn't you explain the minutes part of it. What do we set it at? Give us scenarios. Also, explain the Trailing part of it. Don't leave things out.

  4. Too scary! The price could fall 10% in a few minutes while the timer is running and not recover. Then you would take a 10% stop loss..instead of a small one.

  5. Ya I would like to know how to determine the minutes entry. It would be diff for every coin, dependent on volume and something else somehow.

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