Education
Here you will find all the knowledge and tools for confident trading in the
Moonbot terminal:
from understanding terms and strategies — to trade analysis and risk control.
Position and Risk Management
— the potential loss a trader is willing to accept in a single trade or over a certain period.
— a pre-defined portion of the deposit a trader is ready to lose in case of an unsuccessful trade. Usually expressed as a percentage of the deposit.
— automatic closing of a losing position to limit potential losses.
— automatic closing of a position once the desired profit level is reached.
— a dynamic stop loss that follows the price as the profit grows but does not move back when the price pulls back. It helps to lock in profits if the market reverses, while still allowing the trade to grow.
How it works:You set the trailing stop at a specific distance from the current price (e.g., 5%). As the price moves in your favor, the stop adjusts accordingly, maintaining the set distance. If the price reverses and pulls back by that amount, the position is closed with a profit.
Example: You bought BTC at 90,000 USDT and set a trailing stop at a distance of 5% from the current price.
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The price rises to 95,000 USDT → the trailing stop moves up to 90,250 USDT (95,000 – 5%)
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The price continues to rise to 100,000 USDT → the stop moves up to 95,000 USDT (100,000 – 5%)
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The price pulls back to 95,000 USDT → the stop is triggered, and the position is closed with a profit of 5,000 USDT (+5.5%).
If you had used a regular stop loss at 85,500 USDT (5% below entry), it would have stayed there and not protected your profit when the price reversed from 100,000 USDT.
Key advantage:A trailing stop removes the need to guess when to exit a winning trade. You let the profit grow while the stop automatically protects it from a market reversal.
— the decrease in account balance from its peak value. Used to evaluate the risk and resilience of a trading system.
— a set of rules that defines position sizing, acceptable risk, and capital allocation between trades.
— a system of rules and restrictions designed to prevent significant losses and preserve capital over the long term.
— opening an additional position that offsets potential losses from the main trade. In essence, this is a form of insurance for your portfolio. For example, if a trader holds a large long position in Bitcoin, they may open a small short position to partially protect against a price drop.