📉Trailing Stop Loss

A trailing stop loss is a feature allows you to protect profits by using a trailing stop loss that adjusts with the market cap, and also sets a target profit level to sell your asset at a significant gain. The stop loss helps prevent large losses if the market turns against you, while the take profit ensures you capitalise on substantial gains.

• Save Profit (TSL - Trailing Stop Loss)

  • The trailing stop loss (TSL) is a trading mechanism that adjusts your stop loss level in response to the highest market cap reached after you purchase the token. Essentially, it sets the stop loss a certain percentage below the highest market cap the token achieves. As the market cap of the token increases, the stop loss level rises in tandem, preserving a percentage gap below the peak value. However, if the market cap begins to decline, the stop loss does not adjust downward but remains at its last adjusted level. This way, it helps protect your gains by locking in profits as the market cap climbs, while still providing a safety net if the market turns against you.

• Activation Price (Optional):

  • The TSL feature becomes active only after the market cap of the token reaches a specified threshold. Before this level is achieved, the trailing stop loss does not come into effect, so the token is not protected by the trailing stop loss mechanism until the market cap surpasses this activation point.

• Stop Loss:

  • The stop loss is set as a fixed percentage below your initial purchase price. This level remains static and does not adjust with changes in the market cap after the purchase. It is designed to limit your losses by selling the asset if its market cap falls to this predetermined level.

• Take Profit:

  • Your take profit level is set to capture gains when the market cap increases to a predetermined multiple of the initial purchase price. This means you plan to sell the token when its market cap reaches a level that represents a significant profit from your original purchase.

How it works:

Save Profit (TSL - Trailing Stop Loss): Set at 20%

Activation Price (Optional): Set Market Cap at 150k

Stop Loss: Set at -20%

Take Profit: Set at 500% Profit

1. Initial Purchase:

   • You buy the token when the market cap is 60k.

2. Market Cap Increase :

   • As the market cap rises from 60k to 160k, the TSL feature becomes active because it has surpassed the activation price of 150k. At this point, the trailing stop loss is set to maintain a 20% margin below the highest market cap reached.

3. Market Cap Decline:

   • If the market cap starts to decline and falls to 128k, your trailing stop loss triggers a sell order. This ensures that you lock in profits, as the market cap had been higher and the trailing stop loss had adjusted to protect gains.

4. Trailing Stop Loss Adjustment:

   • Suppose the market cap peaks at 160k. Your trailing stop loss will be set at 128k (20% below 160k). If the market cap continues to rise, your trailing stop loss will adjust upwards accordingly. For example, if the market cap later increases to 180k, your trailing stop loss will adjust to 144k (20% below 180k).

5. Take Profit Scenario:

   • If instead, the market cap rises to 360k (500% profit from the original 60k), your take profit target would be met, and the token would be sold to secure your gains.

6. Cut loss Scenario:

   • If the market cap instead decreases and hits 48k, this is where your stop loss gets activated. The stop loss is set at -20% from your purchase price of 60k, which means it is triggered if the market cap drops significantly below this threshold. In this case, 48k is 20% below 60k, so the stop loss order executes, selling your tokens to prevent further decline.