Take-profit, stop-loss, rebuys and smart exit
· 4 min read · Bitlot Team
Most of the work in a trade happens after you open it. Bitlot's smart trading tools let you plan that part in advance: where to take profit, where to cut a loss, when to add to a position and when to let a move run. This guide explains each tool and how they fit together. Auto Trader applies the take-profit, stop-loss and smart exit you configure; rebuy ladders are for trades you open yourself.
Take-profit and stop-loss
A take-profit (TP) closes a position when price reaches a target in your favour. A stop-loss (SL) closes it when price moves against you by a set amount. Together they define the trade before it starts: what you are aiming for and what you are prepared to give up.
In Bitlot you can set both as you open a trade, as prices or as percentages from your entry. Bitlot then watches them for you and closes the position when either level is reached.
A few things worth knowing:
- Set them on entry. A trade without a stop-loss has no planned exit on the downside.
- Think in ratios. Comparing the distance to your TP with the distance to your SL tells you how much you're aiming to make for each unit you risk.
- Fills aren't exact. In fast markets a TP or SL can fill at a slightly different price from the level you chose.
Rebuy ladder (DCA)
A rebuy ladder plans additional buys at lower prices before you need them. This is often called dollar-cost averaging, or DCA. If price dips to a rung on the ladder, Bitlot adds to the position, which lowers your average entry price.
For example, you might open a position and plan two rebuys: one 3% below entry and one 6% below. If both fill, your average entry is lower than your first buy, so price has less distance to recover before the position is back in profit.
Rebuys have a cost: each one increases the size of the position, so a ladder that fills completely means you hold more of a coin that is falling. Keep these points in mind:
- Count the full ladder when you size the trade, not just the first buy.
- Keep a stop-loss below the last rung, so the ladder has an end.
- With leverage, check that a fully filled ladder doesn't move your liquidation price uncomfortably close.
Smart exit
A fixed take-profit closes at one price. If the market keeps moving in your favour, the rest of that move is left behind. Smart exit is a trailing exit designed for that situation.
Once a trade has moved a set amount in your favour, smart exit starts tracking the best price reached. As price rises, the exit level rises with it, staying a set distance behind. If price turns and falls back by that distance, smart exit closes the position.
In other words, smart exit follows price up and closes when the move fades. It never moves the exit level backwards.
The trade-off is in the trailing distance:
- A tight distance closes sooner, locking in more of the move but risking an early exit on a normal pullback.
- A wide distance gives the trade more room, but gives back more before it closes.
Putting them together
A typical setup combines all three:
- Stop-loss below your last planned rebuy, marking the point where the trade idea is wrong.
- Rebuy ladder at levels you'd be happy to add at, sized so the whole plan fits your risk limit.
- Take-profit at a level that makes the risk worthwhile, or smart exit to let a strong move run.
Auto Trader applies the take-profit, stop-loss and smart exit you configure (it does not use rebuy ladders, and its stop-loss is optional). On manual trades and signals you can set each one yourself when you open the position, rebuy ladder included.
None of these tools predicts where price will go. They make sure your plan is followed consistently, even when you're not watching the screen.