Cryptocurrency markets are very fashionable lately and traders want to take part and take advantage of their volatility. As adoption and maturity increase in the cryptocurrency world, more new traders inevitably get involved in the markets every day. One of the significant advances in the blockchain world is the advent of decentralized exchanges (DEX), which allow traders to trade tokens while maintaining ownership of their keys. While decentralized exchanges today offer a tremendously valuable service, due to the lack of good tools, they all end up underwhelming the season trader with experience on centralized exchanges.
BogTools and its Bogged Finance protocol are an ecosystem of developer-friendly tools and dApps that offer traders advanced trading tools, and has been innovating at a blazingly fast pace in recent months. The team behind BogTools seeks to offer DEX users access to multiple tools only found on centralized exchanges (CEX), such as limit orders, stop-losses, advanced charting, and more. They have been working on a wide variety of products to simplify the use of the tools and make the user feel more satisfied when investing.
Days ago BogTools introduced Limit Sells for PancakeSwap, allowing crypto traders to place orders that will be filled once the price of any PancakeSwap token increases. This development is a great advantage over limit buy orders that allows users to buy the dip in any PancakeSwap token.
On the other hand, more recently the BogTools development team has announced the Trailing Stop-Losses trading tools, a highly anticipated feature that satisfies the requirements of many users in the ecosystem and which could make BogTools one of the preferred destinations for all operators in BSC. Still, many people may not know what this is all about, let’s take a look.
A trailing stop loss is a more advanced version of a normal stop loss that allows traders to place a preset order at a specified percentage of the market price when the market swings. It helps traders limit losses and protect profits when a trade does not move in the direction that traders consider unfavorable.
The trailing stop moves by a specific percentage when the price moves favorably. It locks in profits by allowing a trade to stay open and continue to make profit as long as the price moves in the direction favorable to traders. Traders can place a trailing stop order when entering a position initially. The trailing stop could be placed as a reduction only order with the aim of decreasing or closing an open position as well.
A Trailing stop loss order is initially placed in the same way as a regular stop loss order. The main difference between a regular stop loss and a trailing stop loss is that the latter moves every time the price moves in your favor.
This is so, for every 5 BUSD that the price rises, the trailing stop would also rise 5 BUSD. If the price goes up 10 BUSD, the stop loss will also go up 10 BUSD. But if the price starts to fall, the stop loss does not move.
Let’s look at an example. You bought 1BNB at a price of 300 BUSD, set Stop Loss 5%, closing price with a loss of 285 BUSD. If the price falls to 285 BUSD or less, your position will be closed automatically with a Stop Loss in the market, as usual. If the price rises to 310 BUSD for BNB, then its Trailing Stop Loss will move higher, by 5% from 310, in the range of 294.5 BUSD. If the price rises further, up to 320 BNB, your Trailing Stop Loss will move even higher, also by 5% from 320 BUSD, in the range of 304 BUSD. And this is already a no-loss zone because he bought BNB for 300 BUSD. The price goes further and rises to 330 BUSD, and its Trailing Stop Loss moves again 5% of this price, in the range of 313.5 BUSD. Then the price reverses sharply and starts to fall from 330 BUSD to 314.5 and below. The Stop Loss is triggered and you close your deal at the market price of 314.5 BUSD, with a profit of 13.5 BUSD, instead of a possible loss or instead of waiting on a position.
What must be taken into account here is that BogTools Trailing Stop-Losses is a tool available to provide peace of mind when performing this type of operations by establishing a Stop-Loss with a % behind the token price, thus guaranteeing a good profit while the Price increases, as the BogTool tool tracks price, which will make you sleep soundly, in other words.
Now how can I make use of this important feature in BogTool? It’s very simple. Just go to the website https://bogged.finance/stoploss, there you will find an interface where you can see the stop loss section and next to it the Trailing stop loss section. Then you connect your Wallet (Desktop Meta Mask or Mobile TrustWallet). Once done simply select your token and how much you would like to withdraw when the stop loss is triggered. Next, set the percentage drop you would like before the stop loss is triggered. When the order is done just let BogTools do the rest.
Keep in mind that using this feature requires maintaining $5k BOG, and there is a $5 BOG fee per use, to cover the costs involved in monitoring and executing the order. X3 bet multipliers apply for the offset bet and x12 for the LP bet.
The introduction of this tool allows a significant rebound in the development of the project, taking into account that the team is always active in social networks communicating any progress. In this way BogTools users will now have the ability to buy and profit effectively to take advantage of the volatility in the crypto market.