From 25031848b20badeaa902b2e8bdc7c6ec65351e82 Mon Sep 17 00:00:00 2001
From: Gert Wohlgemuth <berlinguyinca@gmail.com>
Date: Fri, 1 Jun 2018 20:50:40 -0700
Subject: [PATCH] Create stoploss.md

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+# Stop Loss support
+
+at this stage the bot contains the following stoploss support modes:
+
+1. static stop loss, defined in either the strategy or configuration
+
+2. trailing stop loss, defined in the configuration
+
+3. trailing stop loss, custom positive loss, defined in configuration
+
+## Static Stop Loss
+
+This is very simple, basically you define a stop loss of x in your strategy file or alternative in the configuration, which
+will overwrite the strategy definition. This will basically try to sell your asset, the second the loss exceeds the defined loss.
+
+## Trail Stop Loss
+
+The initial value for this stop loss, is defined in your strategy or configuration. Just as you would define your Stop Loss normally.
+To enable this Feauture all you have to do, is to define the configuration element:
+
+```
+"trailing_stop" : True
+```
+This will now actiave an algorithm, whihch automatically moves up your stop loss, every time the price of your asset increases.
+
+For example, simplified math,
+
+* you buy an asset at a price of 100$
+* your stop loss is defined at 2%
+* which means your stop loss, gets triggered once your asset dropped below 98$
+* assuming your asset now increases in proce to 102$
+* your stop loss, will now be 2% of 102$ or 99.96$
+* now your asset drops in value to 101$, your stop loss, will still be 99.96$
+
+basically what this means, is that your stop loss will be adjusted to be always be 2% of the highest observed price
+
+### Custom positive loss
+
+due to demand, it is possible to have a default stop loss, when you are in the red with your buy, but once your buy turns positive,
+the system will utilize a new stop loss, which can be a different value. For example your default stop loss is 5%, but once you are in the
+black, it will be changed to be only a 1% stop loss
+
+this can be configured in the main confiuration file, the following way:
+
+```
+    "trailing_stop": {
+        "positive" : 0.01
+    },
+```
+The 0.01 would translate to a 1% stop loss, once you hit profit.