the Trailing Stop Loss and Trailing Take Profit calculations do not make sense to me

[d4fuQQ]

Hi, I'm wondering about the calculation of the readjusted TP and SL values based on the settings coming from the config file.

These are the default values as given in the config:

  # define in % when to sell a coin that's not making a profit.
  STOP_LOSS: 5

  # define in % when to take profit on a profitable coin.
  TAKE_PROFIT: .8

  # when hit TAKE_PROFIT, move STOP_LOSS to TRAILING_STOP_LOSS percentage points below TAKE_PROFIT hence locking in profit
  # when hit TAKE_PROFIT, move TAKE_PROFIT up by TRAILING_TAKE_PROFIT percentage points
  TRAILING_STOP_LOSS: .4
  TRAILING_TAKE_PROFIT: .1

Then the STOP_LOSS is set to -5 and the TAKE_PROFIT value is stored: https://github.com/CyberPunkMetalHead/Binance-volatility-trading-bot/blob/533daf54c0c47390d2d51daa67fec8127da4a829/Binance%20Detect%20Moonings.py#L437-L438

Now, let's assume a simple scenario: A position was opened at a price of coins_bought[coin]['bought_at'] = 50. Based on the following calculations this means TP = 50.4 and SL = 47.5. https://github.com/CyberPunkMetalHead/Binance-volatility-trading-bot/blob/533daf54c0c47390d2d51daa67fec8127da4a829/Binance%20Detect%20Moonings.py#L364-L366 This is not a lot of profit, but okay, perhaps TAKE_PROFIT should just be a higher value.

But that's not the actual issue here.

The next step is to readjust the TAKE_PROFIT and STOP_LOSS values if LastPrice > TP and USE_TRAILING_STOP_LOSS:. So, let's say the last price is LastPrice = 70. This would be a 40% price increase and is calculated correctly in line 371: PriceChange = float((LastPrice - BuyPrice) / BuyPrice * 100), i.e. PriceChange = 40.

https://github.com/CyberPunkMetalHead/Binance-volatility-trading-bot/blob/533daf54c0c47390d2d51daa67fec8127da4a829/Binance%20Detect%20Moonings.py#L376-L378

And now the calculation becomes somewhat obscure to me. Because, looking at the example values, the new TAKE_PROFIT price would then be calculated as coins_bought[coin]['take_profit'] = 40.1 and the new STOP_LOSS coins_bought[coin]['stop_loss'] = 39.7, respectively.

Both are now below the actual entry price. So what am I missing here?

If you ask me, I'd say the following calculations would make a lot more sense, resulting in coins_bought[coin]['take_profit'] = 55.44 and coins_bought[coin]['stop_loss'] = 66.5, respectively:

 coins_bought[coin]['take_profit'] = TP + (TP * TRAILING_TAKE_PROFIT)
 coins_bought[coin]['stop_loss'] = SL + (SL * TRAILING_TAKE_PROFIT)

Of course, then the values in the config should be adjusted accordingly (TRAILING_TAKE_PROFIT > TRAILING_STOP_LOSS), so the new stop loss level is lower than the new take profit level. For TRAILING_TAKE_PROFIT = 0.4 and TRAILING_STOP_LOSS = 0.1, the results would be coins_bought[coin]['take_profit'] = 70.56 and coins_bought[coin]['stop_loss'] = 52.25, for example.

[watchman94]

coins_bought[coin]['stop_loss'] = 39.7 is define in %. so if enter price is 50, the new stop loss price is: 50 * (1 + 0.397)

[d4fuQQ]

coins_bought[coin]['stop_loss'] = 39.7 is define in %.

no, I don't agree. The only value defined directly in % is actually PriceChange, i.e. PriceChange = 40.

so if enter price is 50, the new stop loss price is: 50 * (1 + 0.397)

where can I find this calculation in the code? I don't see it.

attached is an Excel sheet following the script step by step with the example values: Binance-volatility-trading-bot_TSL_calc.xlsx

[celltronic01]

Hey OP,

coins_bought[coin]['take_profit'] = TP + (TP TRAILING_TAKE_PROFIT) coins_bought[coin]['stop_loss'] = SL + (SL TRAILING_TAKE_PROFIT)

Did this solution work for you? Please Advise