#StopLossStrategies

Stop Loss Strategies

A stop loss strategy is an important tool in trading to protect capital and reduce risks. A certain level of loss is defined at which the trade is automatically closed to preserve profits or minimize losses.

Fixed Stop Loss

A fixed level of loss is set, such as setting 50 points below the entry price. This strategy is simple and effective to avoid large losses.

Trailing Stop Loss

It moves with market movements in your favor. For example, if prices rise in your favor, the stop loss moves up to follow the trend while preserving profits.

Volatility-Based Stop Loss

It relies on market volatility, where the stop loss is adjusted based on the volatility rate, such as using the ATR (Average True Range) indicator to determine the optimal distance for the stop loss.

Support and Resistance Based Stop Loss

Support and resistance levels are defined as signals for the stop loss. It is set below support for buy trades and above resistance for sell trades.