Limit price reduction configuration:
Main Menu > Bot Configuration > Trading > client name > Stop-loss > Limit Price Reduction
Limit Price Reduction will determine the default percent reduction between the stop price and the limit price.
For example, if the stop price in the trade is 1000 and the stop limit price reduction is defined as 1%, then the limit order will be placed at 990 once the stop price is reached.
In case you are not familiar with the way a stop-limit order works, read our Order Types article.
There are several issues that you should pay attention to when determining the stop and limit price:
* Selecting a stop-limit price reduction percentage that is too small might result in the limit order being skipped in cases of a quick price drop.
In that case, since the difference between the stop price and the limit price is too small it is possible that the exchange will not have time to place the limit order from the moment the stop price is reached and before the price keeps dropping below the limit price. In that case, your stop will not be executed.
This is an issue that has nothing to do with the bot and depends on the exchange itself and is very common in the case of coin dumps.
* On the other hand, selecting a stop-limit price reduction that is too large might make you sell the coins at a price that is significantly lower than the original stop price, for example in the case of coin dumps.
This is an issue because many times when a stop is skipped, the price soon after goes back up and the stop is executed immediately after.
* By default, the bot will define a stop-limit price reduction value of 2%, however, it can be in your favor to increase this value, even more, especially considering that even when there is a big difference between the stop price and limit price the coins will still be sold in a price that is higher than the limit price as long as the price doesn’t fall too much. This in turn will decrease the likelihood of your stop being skipped.