Exploring #StopLossStrategies :

Stop-loss strategies are essential risk management tools that automate the closure of trades when predetermined loss thresholds are reached. Among these methods, fixed stop-loss orders set a defined exit level below the trade entry point to cap losses. Trailing stop-loss orders adjust in tandem with favorable market moves, locking in profits as prices advance while triggering exits on reversals. Volatility-based stops use market fluctuations—often measured by the average true range—to set adaptive limits, and time-based stops exit positions after a preset duration to mitigate prolonged uncertainty. Each strategy is chosen based on asset behavior, market conditions, and risk tolerance to help maintain a disciplined, objective approach to trading.