double trailing stop loss

How a double Trailing Stop Loss Can Boost the Performance of a Crypto Trading Bot


Oxido Solutions specializes in trend-following crypto trading bots for professional users. While our bots perform well annually, they’re not without their challenges. They generally handle strong, consistent trends quite well and also navigate sideways price action reasonably. However, they sometimes struggle with zigzag movements where the price would sharply rise and then quickly fall, or vice versa. Up until recently, that is. With the new double trailing stop loss functionality, Oxido Solutions has found a solution to the zigzag problem. This blog aims to provide crypto trading bot developers with insights on implementing a double trailing stop loss to improve bot performance. It’s also for users of crypto trading bots to understand what’s technically possible and how it can increase the success of their investments.

In this blog you will learn:

  • What a double trailing stop loss is
  • Differences between a stop market and stop limit
  • Features of our double trailing stop system
  • Its contribution to enhanced risk management
  • The impact on fees and slippage
  • How our double trailing stop loss mechanism works
  • Performance comparison of the old vs. new trailing stop version of our crypto trading bots
  • How you can leverage our trailing stop innovation for your benefit

To understand what a double trailing stop loss is, let’s first take a step back and define what a stop loss is and then move on to what a single stop loss entails.

A.Stop Loss
A stop loss is a crucial tool used in crypto bot trading (and trading in general) to limit potential losses. It’s an order placed with a crypto exchange to buy or sell once the cryptocurrency reaches a specific price. Two primary variations exist: stop loss limit and stop loss market.

Stop Loss Limit
This sets a specific price at which your order will be executed. However, if the market price bypasses your set limit and continues to fall, your order may not be filled. It’s precise but not guaranteed.

Stop Loss Market
This converts your trade into a market order when the price reaches a certain level. It ensures your order is executed, but the price at which it’s filled could be different from your set stop price, especially in a fast-moving market.

B. Single Trailing Stop Loss
A single trailing stop loss is an advanced form of stop loss that moves or ‘trails’ the market price by a specific distance as the price moves in favor of your trade. This allows traders to protect profits while giving a position room to grow.

C. Double Trailing Stop Loss
A double trailing stop loss takes this concept further by using two trailing stops: a primary trailing stop and a secondary trailing stop.

Primary Trailing Stop
This is set closer to the current market price and moves with it. It’s designed to secure profits or reduce losses quickly if the market suddenly reverses.

Secondary Trailing Stop
Set further away from the market price, it’s less sensitive to minor price fluctuations. It allows the trade more room to breathe and is meant to protect against larger, more significant market reversals.

The combination of these two trailing stops in one crypto trading bot strategy offers a more nuanced approach to risk management, potentially enhancing the performance of a crypto bot by securing profits during sudden market spikes while also providing a safety net for more substantial downturns. It’s a way to try to have the best of both worlds: staying in the trade to capture further potential upside while having mechanisms in place to exit if the market turns.



Oxido Solutions’ double trailing stop functionality is a key feature of our fully automated, trend-following system used by our Binance bot, Bybit bot, OKX bot, and other crypto trading bots. To learn how our double trailing mechanism enhances performance, it’s essential to understand a bit about how our system and the pivotal role these trailing stop losses play.

A. Our Strategy and Algo system
Our crypto trading bot strategy leverages the volatility of the crypto derivatives market, pinpointing buying and selling opportunities for Bitcoin Perpetual Futures and other crypto derivatives on top-tier exchanges primarily through technical analysis.

Our approach is a multi-strategy system consisting of two versions of the ATR, our proprietary trend-following algorithm. Both versions employ breakout strategies, meaning they generate a buy or sell alert when the price moves beyond a defined range. One ATR runs on the 8-minute timeframe, while the other one targets the 9-minute timeframe. This dual approach allows them to provide a mutual hedge, somewhat offsetting each other’s performance depending on market conditions.

B. Trading Bot Rules and Risk Management
Oxido Solutions operates on a systematic, rule-based approach, ensuring decisions are consistent and not influenced by emotions. These rules are created based on careful analysis to create a profitable and effective trend-following system. Key rules include position types (long, short, neutral), partial close positions for derisking or taking profits, and using both limit and market orders for control and quick execution.

C. The Double Trailing Stop Loss Feature
Our double trailing stop loss is an integral part of our risk management strategy. Here’s what sets it apart:

Primary Trailing Stop Loss
This is activated as soon as a position is opened. It’s set at a considerable distance from the entry point and adjusts in proportion to the price movements. The distance is determined by the market conditions and the size of the position, always considering the user’s risk profile. This means at the trade’s outset, no more than 2% (low risk), 3% (medium risk), or 4% (high risk) excluding slippage is risked through the primary trailing stop loss.

Secondary Trailing Stop Loss
This one only comes into play when the position is in profit. It kicks in if the price moves slightly in the desired direction. From there, a trailing stop loss is employed, moving up with the price and closing the position if it falls a tiny bit. Positions are primarily closed using limit orders to prevent slippage and extra fees, with market orders as a backup if the limit order isn’t filled.


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4.Impact and Innovation

The double trailing stop loss feature greatly boosts our trading system’s ability to handle all familiar market conditions. Designed to maximize profits during steady, strong trends and quickly adjust to sudden price shifts, it helps the system lock in profits during short-term uptrends and exit promptly during rapid downturns. This makes it more effective at dealing with the market’s unpredictable nature.

This two-part mechanism significantly lowers potential losses while increasing the chance for higher profits. It leads to more trades, which normally might mean issues like higher trading fees and slippage. However, our smart order execution approach effectively tackles these, ensuring the system is both quick to react and strategic in securing potential gains and reducing risks.

In short, Oxido Solution’s double trailing stop loss system is about being one step ahead. It improves performance, aims to protect investments, and adapts swiftly to the quick-moving crypto market. It’s a key part of our commitment to always getting better and managing risks wisely.


Based on backtest data from 2016 and recent live data, our double trailing stop loss system has really changed how our bots perform, especially when looking at the CALMAR ratio. Let’s break down CALMAR first. It’s basically a way to see how much return you’re getting compared to the risks. The higher the CALMAR, the better you’re doing with less risk.

Our CALMAR ratio jumped by 69%. That means we’re seeing better results without increasing the risk. Our old setup had a monthly CALMAR of 1.3, but now, with the new setup, backtest data shows we’re at 2.2. Thus, our double trailing stop isn’t just about more profit; it’s about smarter, safer strategies.

We’re also seeing our bots make more moves. For instance, our new setup is doing about 24.6 trades a month now, up from 14.5. More trades and a better CALMAR means we’re not just trading more; we’re trading more effectively and carefully.

The opinion expressed in this blog article is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.