Examples of Buying and Selling Using SLAMM

Buy Stop-Limit

Imagine that the current price of ETH is $1000 (USDT) and you have a plan to start buying it when it enters the bullish trend. Nevertheless, you do not want to rush to buy it now, you need to be sure that the chart performs the uptrend movement first, so you need to limit the price you will pay.
Suppose that your technical analysis tells you an uptrend might start if the market breaks above $1100. You decide to use a buy stop-limit order to open a position, in case the breakout happens. You set your stop price at $1100 and your limit price at $1150. As soon as ETH reaches $1100, the engine is triggered and a limit order to buy ETH at $1150 is placed. Your order might be filled with a price of 1150 or lower. Note that $1150 is your limit price, so the transaction will never be over $1150, or else it is invalid.

Sell Stop-Limit (Stop Loss)

Imagine that you bought ETH at $1000 (USDT) and the current market price is $1100. To control the risk and prevent the loss, you decide to use a stop limit to sell ETH if the price falls back to your entry. You set up a sell stop-limit order with a stop price of $1050 and a limit price of $1000 (the price you purchased ETH at). If the price reaches $1050, a limit order to sell ETH at $1000 will be placed.