$BTC
emotion from trading and ensures you don’t suffer larger-than-expected losses.
Here are a few key **stop-loss strategies** to consider:
### 1. **Percentage-Based Stop-Loss**
- Set a fixed percentage loss (e.g., 5%, 10%, or 15%) from your entry price.
- *Example*: Buy at $40,000, set stop-loss at $36,000 (10% drop).
### 2. **Support-Level Stop-Loss**
- Place your stop-loss just below a key support level (where buyers usually step in).
- *Example*: If Bitcoin has strong support at $35,000, set stop-loss at $34,500.
### 3. **Moving Average Stop-Loss**
- Use a moving average (like the 50-day or 200-day MA) as a dynamic stop-loss.
- *Example*: If price closes below the 50-day MA, exit the trade.
### 4. **Volatility-Based Stop-Loss (ATR)**
- Use the **Average True Range (ATR)** to set a stop-loss based on market volatility.
- *Example*: If ATR is $2,000, set stop-loss 1.5x ATR ($3,000) below entry.
### 5. **Trailing Stop-Loss**
- Adjusts the stop-loss as the price moves in your favor to lock in profits.
- *Example*: If Bitcoin rises to $45,000, move stop-loss up to $40,000 (protecting gains).
### **Final Tip:**
Always backtest your stop-loss strategy to ensure it fits your risk tolerance and trading style.
Would you like help optimizing a stop-loss strategy for a specific asset? 🚀