Mit4Code
commented
3 years ago I have a new trade which invalidates the fact that the Trailing sell is following the open of the candle, but it confirms again the exit as beeing on the open of the candle.
The entry arrow is at the corect entry price but the exit arrow is far far away from the real exit, about 1.53% away.
15 min candles
Regarding the trailing sell when I look on the 5s candles there was a drop and the trailing sell took it into consideration. It sold at -0.81% down from the top but the market was fast this time and it's hard to say if it was the market slipage or the bot which it didn't act when it had to. The sure thing is that it acted this time but this leaves us with the question: why it didn't acted when it had to during the previous trades? It is the trailing fault or is there something else?
5 seconds candles
5 seconds candles
Hi,
Let's start with this picture where we can see that the exit ARROW show up around the price of 20.076 while the exit PRICE show up as beeing 19.9837
15 min candles
To confirm the exit price I went on Binance.com and the average exit price show up as beeing 19.9839.
If the problem will be only the arrow it won't be a big deal, but it looks like the problem is bigger: the trailing stop seems (but can't be sure) to report itself also to the open of the candle while it should actually follow the high of the candle. Let me show you this.
The trailing sell was set at 0.4%. The price where the bot has sold it is at around -0.84%
15 min candles
Yet, if I take -0.4% from the open of the candle it falls around 19.9941 which is very close to the price where the bot has sold 19.9837. That slipage it could have been posible.
15 min candles
Now the question is if the price was moving fast and maybe this is why the bot has sold so late. I was right on the spot and I was following that candle just to see what the bot is doing. The price was slow and there was alot of time to sel at the right price. I can proof this also. Check the Binance time when the bot has sold: 00:02:49. Now look at this 5 seconds candles and you will understand that the market was mooving quite slow and it offered plenty of time to sell.
5 seconds candles
While I was writing this the bot has went into another trade and it confirmed again what I was saying abobe and it really proofed the issue with the Trailing sell which is following the open of the candle instead of the high of the candle.
The bot is going into a trade and is doing one DCA and the price goes up. During the next candle the exit conditions are met more than enough and the exit is left on the Trailing sell. The candle goes up and then falls from the high 1.25% but the bot it's not going out despite the fact that the trailing sell is 0.4%.
Yet, if I measure the drop from the open of the candle, the drop is less than 0.4% and I suspect that this might be one of the causes of not going out (this thesis was invalidated I think and I explain it in the next comment to this issue).
Then it comes the next candle and the bot is still in the trade and this makes me to think that now the trade has fallen again under the Gain exit condition of 1.2% and now the bot becomes a HODLer.
The way how I see the things is like this: if the Gain exit has been met it should surender the control to the Trailing sell condition and it sould not check again for the gain until the next trade. The initial stop loss should surender it's control also to the trailing sell. At this point the trailing sell should follow the highest price starting from the moment when the gain exit has been met.
As we can see here the market could have went bearish and a trade which was a good one could have went wrong and would have hit my stop loss of 3%.