I have been having trouble establishing my stop loss in cryptocurrencies.I often put the very tight stop and get me out of the market with losses before the price really starts moving in the address I want.Any recommendation on how to correctly configure a stop loss so as not to lose too much but not to leave too soon?
If they get you from the market ahead of time, it may be because you are using such a stuck stop that it seems that you are afraid of being operating.Give a breath at the price, man.
The problem of putting the Stop Loss too tight is that in volatile markets such as cryptocurrencies, they are likely to get you with small movements before the price recovers.Try to give your stop loss more space, or use a trailing stop that moves as the price advances.
Good option of the Trailing Stop.Another technique is to use the atr (average thrue rage
Another option is to put the Stop Loss at key levels such as important supports or resistance.In this way, if the price reaches those levels, it is more likely that the trend is really changing and not just a temporary movement.
Yes, of course, put the stop in the important supports ... where everyone else also have them.Perfect for a good Stops sweep to take you away before the market rises.
You could also consider using a stop loss based on the percentage of your account that you are willing to lose.In cryptocurrencies, volatility can be brutal, so it is important that you do not put a stop too close to the current price.
Exactly, and that is why correct risk management is fundamental.You never risk more than 1-2% of your account in a single operation.That will protect you from great losses even in volatile markets such as crypto.
What I do is calculate my risk depending on the ATR (Average True Range
The ATR is useful, but neither is it infallible.Remember that in crypts, any tweet or news can volatilize your analysis in seconds.Eye with trusting too much in a single indicator!
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