Trading Terminal 101

 

 

 


Use the Trading Terminal tools to plan your trade
Set entry and exits
Stop Loss options
DCA targets & more
all before placing it on the exchange!




1. How to open and close a position - Basic

 
 

To start, here is a quick example of a market Buy:

  1. Select exchange account

  2. Go to the Trading Terminal select the pair
  3. Select market order as your entry strategy
  4. Enter the amount to buy
  5. Open the position

This trade will now be placed as an open position listed above the trading terminal,
or you can view this on the main dashboard under positionsopen

Click ‘View columns’ to see more information on your trade:

basic-trading_terminal_2.gif

 
  To sell an open position to the current market price, click exit position located under the Actions column: exit_button.png  
 

You could also add targets to an open position by selecting ‘edit position’’ or applying your settings straight from the Trading Terminal:

When ready click ‘Update position’

update_position.png*example only

 
 

Now that we've reviewed a basic market buy & editing of an open position, you could instead set the entire trade, with entry, exit, and other targets, before opening the position. Below is a review of the trading terminal tools you could apply to your trade.

 
 

2. Trading Terminal tools


Options to open a position and how to increase the position size.
Entry & DCAs


 Entry Strategies

 
 

entry_strategies.png


 

Limit & Market orders

 
 

 -> Market orders will execute instantly to buy or sell at the current available market price

    • Be cautious on low volume pairs, this will execute to the next available bid (buyer) or ask (seller) price that may lead to slippage

-> Limit orders are placed on the order book at a price point you have determined, this allows you to set the maximum or minimum price at which you are willing to buy or sell.

        • If you place a buy limit order above the current price it will buy at market price
        • If the price does not reach your price point it will not be triggered, if there is not enough volume you may not buy or sell the total quantity

 

Stop-Limit Order

 
 

Stop-Limit is a conditional order to either buy or sell after the price has surpassed a specified point: Stop-limit orders allow you to have precise control over when the order should be filled, but it's not guaranteed to be executed. Once the stop price you’ve set has been reached it will place an order in the book at the limit price that you have set.

    • This will allow you to place a limit order above the current price

One example is if you would like to place an order to buy once it breaks out of a current trend.

Say Bitcoin has been ranging between 9200 and 9900, failing to breakout above 10 000,

You could use a stop-limit order to purchase BTC if the price breaks above 10 000.

 

Once the current price reaches your ‘Stop Price’ your limit order ‘Price’ will activate.

If the current price is lower than your limit price, it would then buy the next order at ASK price and continue to fill until you have completed your order. 

stop_price.png

In this situation, you could also use your ‘Price’ 10150 to be set as the maximum price you are willing to pay.

 
 

 



Import From Exchange

 
 

If you have coins on the exchange that want to be managed by Zignaly, you can convert them into a position by selecting this option. (example: BTC/USDT pair, you have BTC and want to convert it to USDT) 

In the price input, you need to insert the price at which you bought these coins.

This price is important because exit strategies (stop loss, trailing stop, take profit...) are based on a percentage from this price.

You will find under the Units input; the number of available coins for the selected asset that you are trying to import.

This option won't buy any coins, it will plan an exit strategy based on your

configuration for the specific amount.

 

Attention: If you have open orders on the exchange managing the coins that you are trying to include in this position, the position will fail because it won't be able to manage it. You need to cancel them on the exchange before importing them.

    • To cancel a position on your Zignaly Exchange Account go to
      My exchange account’ Once in your Zignaly exchange account select ‘Orders’

orders.png

        • For more information: Orders, Contracts & Import Coins

Multi Entry Order

Multi Entry Order is an adaptive order working that open a LONG and SHORT limit order at the same time. This type of order works only in futures exchanges. The first one reached by the market and completely filled will cancel the other one. The LONG Price you set should be lower than the SHORT Price. The idea is to take a SHORT position if the market rises up, or, take a LONG position if the market falls to your LONG limit order.
This strategy could be useful when the market is in range. Let's take the following example. 
> Say bitcoin has been ranging between 58000 and 59400, like early April 2021. You would take advantage of this range by selling the top and buying the bottom. Let's say the price now is at 58800, at the middle of the range. You could place a SHORT order at 59050 and a LONG at 58500. You don't know where the price is going, but in any case, one of the two orders will be filled.

mceclip2.png

Assuming that the current price reaches your "SHORT Limit Order" at 59050. In this case, a SHORT position is open now and the "LONG Limit order" at 58500 is canceled. For setting up Take Profits, Stop Loss, DCAs..., you have to make it the same as a LONG order. Indeed, in percentage, it will be a positive Take Profit and negative Stop-Loss and DCAs. If you need 1% of Taking Profit and -0.7% fixed Stop-Loss, so you put 1 in Take Profit field and -0.7 in Stop Loss field. In our example, the SHORT side wins. So, the system will adjust the orders by reversing the parameters. It will be -1% of take profit, 0.7% Stop Loss, and so on.

 

For setting up Take Profits, Stop Loss, DCAs..., you have to make it the same as a LONG order. Indeed, in percentage, it will be a positive Take Profit and negative Stop-Loss and DCAs. If you need 1% of Taking Profit and -0.7% fixed Stop-Loss, so you put 1 in Take Profit field and -0.7 in Stop Loss field.

Assuming that the current price reaches your "SHORT Limit Order" at 59050. In this case, a SHORT position is open now and the "LONG Limit order" at 58500 is canceled. So, the system will adjust the orders by reversing the parameters. It will be -1% of take profit, 0.7% Stop Loss, and so on.

 

mceclip4.png

You can see that when the SHORT side wins, parameters are reversed.

 



DCA / Rebuy Targets

These are your goals to enlarge your position size. If the price falls, this will lower your dollar cost average (average entry price) for the pair. You can add as many targets as you wish, but you have to be sure that your balance will support it.

Each target has two parameters: 

_ Target, in percentage or in fixed price, which is the percentage under the average buying price at which you will buy again. 

_ Quantity, also in percentage, which is the percentage from your current position size that you will add with this new buy.

The target is calculated over the average buying price and the position size over the total position size (the sum of all your investments so far).

 
 

Check the following example for a better understanding of how it works: 

Market WAVES/BTC 

Current WAVES price 0.00052030 

Position Size: 0.01 BTC 

DCA/ReBuy targets: 

  1. Target: -3%, Quantity: 100% 
  2. Target: -5%, Quantity: 100% 
  3. Target: -5%, Quantity: 100%

DCA_example.png

*example only

 
 

The first target price would be 0.00052030 - 3% = 0.000504691 If the price reaches that amount, a limit buying order with a price limit of 0.000504691 will be sent to the exchange to buy 0.01BTC. After the order is filled, the average buying price is recalculated, also the position size: Average buying price = (0.00052030 + 0.000504691) / 2 = 0.000512496

The formula is simplified because the invested amount is the same, but the original formula has been taken into consideration.

New Position Size: 0.02 BTC.

If we have stop-loss, take-profits, and trailing stop, all of them will be recalculated with the new average buying price.

 

For the next DCA/Rebuy target to be triggered, the price needs to fall 5% below the new average buying price: 0.000512496 - 5% = 0.000486871

Again everything would be recalculated, and the new average buying price would be 0.000499683.

And finally, if the price reaches 0.000499683 - 5% the final target will be triggered, and a new buy order will be sent at 0.000474699, lowering our average buying price to 0.000487191.

With this new price, 0.000487191, we could exit our position with a price below our original buying price (0.00052030) and still be profitable.

The original DCA strategy counts on doubling your current investment, so you should choose 100% in all your target quantity if you want to follow it.

    • Keep in mind when you apply DCA orders to your position, & have set a stop loss, your stop loss will not activate until all of your DCAs have been filled.
      Stop loss (or any trigger) is based on the average entry price. Each time there is a new entry order (DCAs are entry orders), the average is re-calculated.
      A Stop Loss will not be applied until all DCAs are completed. 
      *with the exception of Trailing Stop Loss, TSL is an independent order and will not be affected by pending DCAs

Increase Position Size 

 
 

Use this option to increase your position size of open positions.

Select the edit button and enter either a limit order,  market order, or stop-limit order

 
 

A limit order will allow you to place a buy order at a price point you have determined.

This order will be placed on the exchange order book and added to your position if the price is reached.

A market order will buy immediately at the current market price.

 A stop-limit order is a conditional order to buy after the price has surpassed a specified point

This will increase your position size and adjust your average entry price.

increase_positionsize.png  
 

 


 
  Options to close/exit a position - Stop-loss & Take Profit
 
 

Take Profit

 
 

By placing the take profit order, you specify the exact price at which to close out an open position for a profit.

If you split your targets:

These are your goals for taking profits. You can add as many targets as you wish but each target quantity has to be above or equal to the minimum amount required by the invested coin.

https://www.binance.com/en/trade-rule

 

Each target has two parameters:

    1. Target price (% or fixed price): the percentage from your average buying price or a fixed price at which you will sell. 
    2. Quantity: the percentage of your position size or absolute value. (all targets combined must equal 100%)

Take-profits orders are placed on the exchange as soon as the buy order has been filled.



Stop Loss

This option will help you to limit your losses if the market goes in the opposite direction of what you had thought. If the price falls, from your average buying price to this percentage, then the position will be closed with a market order.

Note: Because we are using market order for the stop loss, the final selling price could be below your defined stop-loss threshold.

stop_loss.png



Stop-Loss Type

 
 

In the ‘type’ field you can select between Fixed, Follow Take Profit, & Break-Even.

    • Fixed: This is the standard setting, your Stop-Loss will be set at the percentage target that you have specified from your average entry price.

    • Break-Even: (Stop-Loss To Break Even)

      *This will require you to set a Take Profit target.*                                      When this Stop-Loss option is selected, once your first take profit target has been reached and has completed, the stop loss is then updated from the current setting to the entry price of the position, plus 0.3% (allowing room for fees). If another take profit is reached the stop-loss will then remain at the entry price.

    • Follow Take Profit: (Stop-Loss Follows Take Profit)
      *This will require you to also set a Take Profit target.

      When this Stop-Loss option is selected, once your take profit target has been reached and has completed, the stop loss will be updated to the previous take profit setting, if it was the first take profit, then it is updated to the entry point of the position.

      Example:
      stop-loss -10%
      take profit 1: +10%
      take profit 2: +20%
      take profit 3: +30%

      When the first take profit is completed, the stop loss is moved to the entry price plus 0.3% (allowing room for fees)
      When the second take profit is completed, then the stop loss is moved to the first take profit target example: +10%, and so on until the position is closed,
      It always updates to the previous take profit value.


Trailing Stop TSL

 
 

 A Trailing Stop is designed to allow you to continue to follow a profit as long as the price is moving in your favor. The order will close the trade when the price changes direction based on a specified percentage. 

Trailing stop uses two parameters:

    1. Trigger: (Trailing Stop % or price) based on the average entry price and this determines when the trailing-stop will activate
    2. Distance: the trailing stop loss will follow the latest high of the market price at the distance in %. If the price falls below this distance, then a market sell order will be placed, and the position will be closed at the current market price.

trailing_stoploss.gif

TRIGGER PRICE __________ TRAILING STOP (Distance) __________

Note: Because we are using market order for the stop loss, the final selling price could be below your defined stop-loss threshold.


 

 
 

Additional Features

 
 

Post-only

 
 

If you check the post-only option, the order will be sent to the exchange as post-only, which means that it will ensure a Maker rebate. If for any reason the order would be executed against any resting order, it will be canceled instead. 

 
  For this reason, the post-only option is only for Limit Order or Stop-Limit Order. If you send a buy limit order with a price higher than the current market price, it would cancel as it would be filled automatically. not allowing a maker rebate. This option is really helpful to control the fees that you pay to the exchange. postonly1.png  
 

 


Entry Order Expiration

 
 

The max time (in minutes) that the system will wait for the buying order to complete. If after this time has elapsed, the position is not filled, it will be removed from the exchange and closed.

 

If the position has been partially filled and the amount filled is above the minimum operational amount, then the buying order will be removed, but the position will operate with the partially filled amount.

 
 

 


Time-Based Auto-close

 
 

If after this time (in hours) the position still hasn’t opened, it will be closed at the current market price. The time-based auto close won't activate if a target from the take profit has been filled or if the trailing stop is active.

 


 

 

 

 




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