#StopLossStrategies A solid crypto stop-loss strategy helps manage risk and protect your capital. Here are some common strategies you can use:
1. Percentage-Based Stop-Loss
How it works: You set a stop-loss order at a fixed percentage below your entry price (e.g., 5%, 10%).
Example: Buy BTC at $30,000 → Set stop-loss at $28,500 (5% below).
Best for: Short-term traders who want consistent risk management.
2. Support/Resistance Stop-Loss
How it works: Place your stop-loss just below a key support level (if going long), or above a resistance level (if going short).
Example: BTC has support at $29,000 → Buy at $30,000 → Stop-loss at $28,800.
Best for: Traders using technical analysis.
3. Trailing Stop-Loss
How it works: The stop-loss “trails” the market price by a set amount or percentage as the price moves in your favor.
Example: Buy ETH at $2,000 → 5% trailing stop → If ETH hits $2,200, stop-loss rises to $2,090.
Best for: Letting winners run while locking in profits.
4. Volatility-Based Stop-Loss
How it works: Use indicators like ATR (Average True Range) to set your stop-loss according to market volatility.
Example: If ATR = $200 → Buy BTC at $30,000 → Stop-loss = $29,800.
Best for: Advanced traders using technical indicators.
Tips:
Always size your positions so a stop-loss hit won’t hurt your portfolio (risk 1-2% per trade).
Avoid placing stops exactly at round numbers — they’re often stop-hunted.
Combine with take-profit targets for better trade planning.
Want a stop-loss strategy tailored to your trading style or a specific coin setup?
