Your guide to avoiding losses: Stop-Loss strategies that save you in times of crisis.
In the volatile cryptocurrency market, crises can arise suddenly and surprise even experts. One of the most important tools to protect your balance is the Stop-Loss strategy. In this updated guide, we present three advanced strategies supported by live examples and practical experience.
1. Smart Fixed Stop-Loss:
Set a fixed selling price based on historical volatility (ATR).
Calculate the average true range for 14 days, and set the stop-loss at 1.5 × ATR from the entry price. Example: If ATR = $3, set the stop-loss $4.5 below the entry price.
2. Adaptive Trailing Stop-Loss:
Moves automatically with the price using the momentum indicator.
When the price rises by 2%, the stop-loss moves by 1% to maintain profits. Experience: A trader entered BNB at $350 and exited after it rose to $400 while protecting a 3% gain thanks to the stop-loss.
3. Dual-Layer Stop-Loss:
Combine a fixed order at a support level with a trailing order to protect profits.
Example: Set a fixed order at $375, and if the price rises by 5%, activate a trailing order that preserves 2% of the profits. Tip: This method protects you from sudden drops and keeps part of the gains.
