$BTC
Your Guide to Avoiding Losses: Stop-Loss Strategies That Save You in Times of Crisis
In the volatile cryptocurrency market, crises can appear 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 14-day Average True Range (ATR), and set the stop-loss 1.5 × ATR below the entry price. Example: If ATR = $3, set the stop-loss $4.5 below the entry price.
2. Adaptive Trailing Stop-Loss:
Automatically moves with the price using a momentum indicator.
When the price rises by 2%, the stop-loss moves by 1% to lock in profits. Experience: A trader entered BNB at $350 and exited after it rose to $400 with a 3% profit protection 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 keeps 2% of the profits. Tip: This method protects you from sudden drops and keeps a part of the gains.