#TradingTales

Optimization of Stop-Limit Orders Based on Market Volatility

Crypto volatility requires precise risk management. A poorly configured Stop-Limit can leave your trade unexecuted or cause unnecessary losses.

Suggested configuration:

High volatility markets: use a wider Stop > Limit spread (e.g. Stop $1.20, Limit $1.10).

Stable markets: reduced spread (e.g. Stop $2.00, Limit $1.98).

Useful indicators: use the ATR (Average True Range) as a reference to define dynamic ranges.

Avoid:

Stops that are too close in candles with long wicks.

Placing orders before macroeconomic events.

Pro Tip: Adjust your Stop-Limit daily according to the average volatility range. It's active management, not passive.