#StopLossStrategies Great question — stop-loss strategies are crucial for protecting capital, especially in volatile markets like crypto. Here are some common and effective ones, depending on your style:
1. Percentage-Based Stop Loss
How it works: Set a stop-loss X% below your entry.
Example: Entered at $60,000 BTC → 5% stop-loss = $57,000
Best for: Simplicity, beginners.
2. Support-Based Stop Loss
How it works: Place your stop below key support levels or swing lows.
Why: If support breaks, it may signal a trend shift.
Best for: Price action traders.
3. Volatility-Based (ATR) Stop Loss
How it works: Use Average True Range (ATR) to account for BTC’s volatility.
Example: BTC has 1-day ATR of $1,200 → stop-loss 1.5x ATR = $1,800 below entry.
Best for: Dynamic traders who adapt to changing volatility.
4. Time-Based Exit (Mental Stop)
How it works: If price stagnates for X days without moving in your favor, you exit.
Best for: Swing traders or those trading breakout setups.
5. Trailing Stop Loss
How it works: As price moves up, the stop-loss trails behind by a % or $ amount.
Example: BTC hits $65K, your trailing stop locks in profit at $63K.
Best for: Letting winners run while minimizing risk.
Pro Tip: Combine multiple strategies:
Entry near support
Stop slightly below it
Trail it up as price moves in your favor
Want me to chart examples of these on a BTC chart?