#StopLossStrategies Stop-loss is a risk management tool that automatically closes a trade when a specified loss level is reached. It protects the deposit from significant losses.
Here are the main rules:
1. Fix your risk: set the stop-loss so that in case it is triggered, you lose no more than 1% of the deposit.
2. Do not move the stop towards the loss - this is the path to losing everything.
3. Set it based on market logic - behind support/resistance levels, not randomly.
4. Risk/reward ratio - at least 1:2 (for example, risking $10 to earn $20).
5. Consider volatility - in active markets, the stop should be a bit wider to avoid accidental triggering.