#StopLossStrategies Stop-loss strategies are essential risk management tools used by traders and investors to limit potential losses on a position. Here are some common stop-loss strategies:

### 1. **Fixed Percentage Stop-Loss**

- Set a predetermined percentage loss (e.g., 5%, 10%) from the entry price.

- Simple and widely used for long-term investing.

### 2. **Volatility-Based Stop (ATR Stop)**

- Uses the **Average True Range (ATR)** to set a stop-loss based on market volatility.

- Example: Stop placed at **Entry Price – (2 × ATR)** for a long position.

### 3. **Moving Average Stop**

- Exit when the price crosses a key moving average (e.g., 20-day or 50-day MA).

- Helps avoid premature exits in trending markets.

### 4. **Support & Resistance Stop**

- Place stops below support (for long trades) or above resistance (for short trades).

- Logical levels where the trade thesis would be invalidated.

### 5. **Trailing Stop-Loss**

- Adjusts the stop-loss as the price moves favorably (e.g., trailing by a fixed % or ATR).

- Locks in profits while allowing room for upside.

### 6. **Time-Based Stop**

- Exit a trade if it doesn’t move as expected within a set timeframe.

- Helps avoid "dead capital" in stagnant trades.

### 7. **Risk-Based Stop (Fixed Dollar Amount)**

- Risk a set dollar amount per trade (e.g., 1% of total capital).

- Ensures consistent risk management across trades.

### **Best Practices:**

✔ **Avoid placing stops too close** (risk of being stopped out by noise).

✔ **Adjust for market conditions** (wider stops in high volatility).

✔ **Combine with take-profit levels** for a clear risk-reward ratio (e.g., 1:2 or 1:3).

Would you like a strategy tailored for a specific asset (stocks, forex, crypto) or trading style (swing, day trading)? 🚀