"Cutting losses" – sounds easy, but doing it... hurts. But if you don't know how to cut losses properly, your account will evaporate faster than an altcoin crashing.
Below are 5 stop-loss strategies I have applied when trading Futures on Binance – particularly effective with small capital from 10–100 USDT.
1. 🎯 Fixed SL based on percentage of capital
For example: Always set Stop Loss at -10% compared to the entry price.
✅ Easy to manage risk
✅ Suitable for bots, good automation
⚠️ Prone to 'stop loss' if set too close
➡️ I use this method as default for all orders (TP/SL = 10%)
2. 📉 Cut based on reversal technical signals
For example: If RSI > 70 and starts to turn, or EMA crosses down → cut immediately, do not wait for SL to be hit.
✅ Reduce losses early before prices plunge
✅ Effective when trading highly volatile coins
⚠️ Need to closely follow the chart or automated monitoring bot
3. 🧠 Trailing Stop – Cut losses inversely based on profit
When the order is 10% profitable, the trailing stop will move SL according to the price to lock in profits, if the price reverses then exit the order in a safe zone.
✅ Protect profits
✅ Hold the order while the trend is still strong
⚠️ Need a bot to monitor in real-time
➡️ The bot I use has a trailing stop of 5–10%, very effective.
4. ⏱️ Time-based Stop Loss – Limit the time holding the order
If after 30–45 minutes the price does not go as expected, exit the order whether in profit or loss.
✅ Avoid 'holding dead orders'
✅ Helps capital circulate faster
⚠️ Prone to missing if the market delays breakout
5. 😐 Emotional stop loss – Accept mistakes
Sometimes analysis is wrong, the market goes against all logic – just cut, don't hold on.
✅ Preserving the account is more important than ego
✅ Don't let small losses turn into disasters
➡️ This is why I use a bot – to eliminate emotions from the trading process.
📌 Conclusion
There is no stop-loss strategy that is '100% correct', but there must be principles from the beginning.
Cut early, lose little – better than cutting late, losing everything.
I am using a Futures bot with only 0.4 USDT/trade, automatic TP/SL 10%, trailing stop to protect profits.
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