How to Use the Bybit Trailing Stop?
Bybit trailing stop is a powerful tool that allows traders to let their winning trades run without risking all of their profits. While this is a great way to maximize your profit, it can be difficult for some newer traders to understand how to use this feature properly.
Basically, this tool lets you set a trailing stop loss that moves the XXX $ you set for that particular order, and then adjusts itself as the price changes. This strategy is a great option for traders who want to maximize their profits while minimizing their risks, and it works well with the average true range (ATR) value.
The bybit trailing stop will move based on your trailing distance and the last traded price you enter, which means that it follows the price as it moves, and it will place a trailing stop order when it meets a certain trigger price. The bybit trailing stop is a great addition to any trading strategy that involves short-term positions, and it can be used for both long and short positions.
It also helps to prevent losing trades from turning into winners, which can be a challenge for inexperienced traders.
This is why many traders find that the best way to manage their risks is to use a trailing stop loss order. A trailing stop can be used in conjunction with a normal stop-loss order to reduce your losses and lock in profit.
To set a trailing stop on Bybit, select your position and then click ‘Positions’. Once you’ve clicked ‘Positions’, select ‘Trailing Stop’ from the left-hand menu.
Next, you’ll be asked to select your desired trigger price. In this example, you’ll want to enter 8000 as the trigger price and 100 as the trailing stop. This way, your trailing stop will only be triggered when the current last traded price passes 8000.
A trailing stop can be set to any of the 3 ATR values: 0.0128, 0.058, and 0.128. The difference between these three values is 0.0014, and it’s a good idea to use the higher ATR value whenever possible.
This technique is particularly useful when you’re trading on the 15-minute chart, as it will allow your stop-loss to remain close to your entry price. The trailing stop can also be applied to shorter time frames, such as daily and hourly candlesticks.
You can also use the trailing stop to prevent your position from going against you in a strong trend. By adjusting the trailing stop based on your entry and exit points, you can take advantage of any strong uptrend that you encounter.
Another way to utilize a trailing stop-loss is to combine it with a moving average. This technique allows you to follow the market price without placing a traditional stop loss, and it can be especially effective when you’re following a trend that changes direction quickly.