Bybit - Coinapult

As you probably know by now, when you open a position on Bybit, you will have the option of setting a take profit (TP) and stop loss (SL) limit for that position. These limits allow you to automate the buying and selling of your assets when they reach a certain value or percentage. In turn, you no longer need to keep checking your phone every few minutes or worrying about the price volatility of your assets. There are some downsides to setting these fixed limits, however. For example, an important crypto news report could cause the value of one of your crypto assets to spike by 50% and then drop back down to its original value. If you used a fixed SL of -10%, you completely missed out on this bull ride. But what if you could set a dynamic SL that considers the change in your asset's price over time? Well, that’s exactly what trailing stops are here for, so read on to learn more. What is a Trailing Stop? A trailing stop is an automated and dynamic way of exiting a position. To explain how it works, we will illustrate it with an example. Imagine that you have a $1,000 long position in ADA and that you’ve set a trailing stop loss to -$100. Here’s how that would play out. Case 1: The value of your investment dropped to $900. If the value of your asset immediately drops to $900, it will automatically be sold just as it would with a regular SL of $900. Case 2: The value of your investment jumped to $1,200 and then dropped to $1,100. If the value of your asset first jumps to $1,200, the trailing stop loss would move the SL from $900 to $1,100. If the asset then drops to $1,100, it will be automatically sold with respect to the new SL of $1,100. How to Use the Trailing Stop on Bybit? If you’re new to Binance-like crypto trading interfaces, you’re likely overwhelmed with all the available options and details that Bybit displays on your screen. Such interfaces can make it very frustrating and time-consuming to figure out where advanced features such as the trailing stop are located. That’s why we decided to make it easy and describe this process in three easy steps. So just follow our guide, and you’ll master the trailing stop in no time. 1. Open the USDT Perpetual trading page. Log in to Bybit and hover the mouse over the Derivatives item in the upper menu. Then hover the mouse over USDT Perpetual and click on any trading pair that you have an open position for. As you can see from the screenshot below, we picked the ADA/USDT pair. 2. Pick a position that you want to modify. Click on the Positions tab at the bottom to list your existing position and their details. Then decide which position you would like to set a trailing stop for. In the screenshot below, we have a single position for ADA/USDT. 3. Set a trailing stop for that position. Click on the gray +Add button in the Trailing Stop column on the right of your position. See the image below for reference. Then enter your desired price retracement amount and click the yellow Confirm button to execute the trailing stop. See the image below for reference. Finally, take another look at your positions to verify that the trailing stop was set. See the image below for reference. How to Set a Trailing Stop Loss Using Inverse Contracts? You can do a little bit more with the trailing stop loss using the inverse contracts. Just follow the three steps below, similar to the previous ones. 1. Open the Inverse Contracts trading page. Log in to Bybit and hover the mouse over the Derivatives item in the upper menu. Then hover the mouse over Inverse Contracts and click on any trading pair that you have an open position for. As you can see from the screenshot below, we picked the ADA/USD pair. 2. Pick a position that you want to modify. Click on the Positions tab at the bottom to list your existing position and their details. Then decide which position you would like to set a trailing stop for. In the screenshot below, we have a single position for ADA/USD. 3. Set a trailing stop for that position. Click on the gray +Add button in the Trailing Stop column on the right of your position. See the image below for reference. In this pop-up window, you'll notice there's an extra box that says activation price. This box is going to allow us to set a condition that activates our trailing stop loss. This means that the trailing stop loss will only be activated when the price action reaches Activation Price. See the image below for reference. So, enter your desired Price Retracement and Activation Price amount and click the yellow Confirm button to execute the trailing stop. Finally, take another look at your positions to verify that the trailing stop was set. See the image below for reference. Final Words Using a trailing stop on Bybit is a great way to automate your trading strategy and minimize the risks associated with price volatility. By setting a dynamic take profit or stop loss limit, you can ensure that you capture as much profit as possible while still protecting your assets from significant losses. Learning to use Bybit’s interface can be a bit intimidating at first, and that includes setting up trailing stops as well. But don’t worry. As long as you follow the steps outlined in this article, you will master the art of using trailing stops and take your crypto trading strategy to the next level. Related articles: How to Place Stop Loss and Take Profit at the Same Time on Binance? How to Copy Trade with TraderWagon on Binance?