Bogged Finance Feature Announcement: Trailing Stop-losses, launching Wednesday 23rd June
We’re absolutely delighted to announce one of our most anticipated trading tools- Trailing Stop-Losses!
What is a trailing stop-loss?
A trailing stop-loss is an intelligent version of a normal stop-loss, which is a limit sell that fills if the price dips below a certain point, preventing losses from happening.
In a trailing stop-loss, the sell price follows (or “trails”) behind the current price of your chosen token, meaning that if the price moons and then unexpectedly drops, then the stop-loss would trigger at a higher price, meaning more profits for you.
Why is this better than a normal stop-loss?
For this example, we’ll look at three traders, A, B and C. All three bought $HYPECOIN at $1.00
- Trader A reckons nothing can ever go wrong and just leaves his trade open.
- Trader B is a bit smarter and knows that DeFi trading can be quite volatile, so he sets a standard stop-loss to trigger if the price drops 25% below his entry.
- Trader C also sets his stop-loss at 25% below entry, however he’s even smarter and knows that BogTools Trailing Stop-Losses is the best tool available for giving peace of mind when making these kinds of trades. He sets a Trailing Stop-Loss to trail 25% behind the price of the token
Later that night, $HYPECOIN pumps 200%, but then quickly dumps to 50% below our three trader’s entry price. All three traders are asleep and miss the price action.
- Trader A wakes up and panic sells, losing 50% of his investment.
- Trader B wakes up and has only lost 25%, thanks to his BogTools stoploss. However….
- Trader C wakes up to a tasty 175% profit.
Why? As the price increased, BogTool’s Trailing Stop-Loss followed it, constantly setting the exit price to 25% below the current price
So how do I use it?
You’ll find our trailing stop-loss interface next to our existing stop-loss section on bogged.finance
To use, simply select your token and how much you’d like to withdraw when the stop-loss triggers. Then, set the percent dip that you’d like before the stop-loss triggers. Once the order is submitted, you can feel free to switch off your computer, BogTools takes care of the rest.
How much does this cost?
Using trailing stop-losses requires holding 5k $BOG, and there is a $5 in $BOG fee per use, to cover costs involved in monitoring & executing the order. The same staking multipliers apply as with our other tools, namely x3 for Compensation Staking and x12 for LP Staking.
So what’s next for BOG?
This is our third week in a row releasing a new feature and we’re not planning on slowing down any time soon. We’ve got some very exciting features coming to BogCharts very soon, so make sure you’re subscribed to our official channels for this announcement.
We can’t wait to show you what we’ve got in store!
Thank you for your continued support,
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