#StopLossStrategies

A stop-loss (SL) limits losses by auto-selling an asset if it hits a predefined price. Here’s how to apply it effectively:

1. **Fixed Percentage SL**:

- Set a % below entry (e.g., 5-10% for crypto’s volatility).

2. **Volatility-Based SL**:

- Use the **Average True Range (ATR)** to set SLs beyond normal price swings (e.g., 1.5x ATR).

3. **Support/Resistance SL**:

- Place SLs below support (longs) or above resistance (shorts) to avoid false breakouts.

4. **Trailing SL**:

- Automatically adjust SL as price moves in your favor (e.g., 5% below current price).

5. **Time-Based SL**:

- Exit if the trade doesn’t materialize within a set timeframe.

**Pro Tips**:

- Avoid round numbers (e.g., $10,000 BTC) where SLs cluster.

- Never move SLs *against* the trend—stick to your plan.

- Pair SLs with risk-reward ratios (e.g., 1:3) to ensure profitability.

Stop-losses are non-negotiable for survival in volatile markets like crypto.