0%
Bot Trading 101 | How To Set a Stop Loss
#Bitcoin#Setting#Stop-loss+7 mais tags

Bot Trading 101 | How To Set a Stop Loss

A stop loss is an order that closes negative positions to limit the loss of a trade. In other words, it acts as a life vest, so you don't sink too much under water. They are set below the price for long positions (buys) and above the price for short positions (sells or short-selling), to close the trade when it has lost a specific amount determined by you.

A famous sentence amongst traders is “cut your losses short and let your winners run”. It isn’t a secret that any trader should try to sell the winner trades at its highest point, but what about cutting your losses short? This question can be answered with just one term, stop loss.

Every time that we open a position we have, or we should have, a profit target and a zone where we decide that we have already lost enough and, therefore, we close the position.

This is implemented through stop losses. A stop-loss means that we acknowledge that we have been wrong opening a trade, we accept it and take the loss.

Cutting losses on time is key to avoid burning your trading account and freeing funds that are locked in old and negative positions.

Since it is such an important element that can even determine whether a trading strategy is profitable or not, how do we know where we should place it? Usually, this is determined by two factors: Our strategy and the risk we are willing to take on.

stop-loss-dashboard
stop-loss-dashboard

What determines the stop loss position?

Strategy

A trading strategy should not only specify buy points, but also the sells or closing strategy. Depending on it, the stop loss will be set at a different level.

For instance, a strategy might set the stop loss, for instance, right below the last pivot, when the MACD makes a bearish crossover or simply with a fixed percentage. Whatever of both it is, your strategy will determine the sell zone as well.

Risk Management

What commonly differentiates a profitable from a non-profitable trader is risk management.

Having the ability and knowledge to have a risk/reward ratio that will make your strategy consistently profitable is an art.

You might have a strategy that obtains positive trades 70% of the time and still lose money if there isn’t proper management of the risk per trade. On the other hand, a very accurate risk analysis can make profitable a strategy with, for example, 60% of negative trades.

The essence behind it is that your strategy might be obtaining a large number of good trades, but if your risk/reward ratio is 1:3 (meaning that in every negative trade you lose three times as much as for the positive ones), your account will sink deeply into loses.

Stop losses are a fundamental part of your trading strategy, they can be so important that it will even determine your profitability.

Finding a consistent strategy to spot the best buy point through long sessions of backtesting goes hand in hand with accurate placement of the stop loss.

Check out our last blog: Top 10 crypto trading tips 2019.

Imagem da caixa de entrada

Informativo

Receba o e-mail semanal com análises exclusivas de critomoedas e notícias que valem a pena ler. Mantenha-se informado e entretido, de graça.

Automatize
seus
tradings!

Bot de trading de criptomoedas automatizado de nível mundial

Vamos começar
Automatize suas operações

Artigos relacionados

Bot Trading 101 | How To Apply a Scalping Strategy
#Automated trading strategy#Strategy designer#EMA+3 mais tags

Bot Trading 101 | How To Apply a Scalping Strategy

Cryptocurrencies | BTC vs. USDT As Quote Currency
#Bitcoin#crypto trading#crypto trading tips+2 mais tags

Cryptocurrencies | BTC vs. USDT As Quote Currency

Technical Analysis 101 | What Are the 4 Types of Trading Indicators?

Technical Analysis 101 | What Are the 4 Types of Trading Indicators?

Bot Trading 101 | The 9 Best Trading Bot Tips of 2023
#crypto trading#trading bot#crypto trading tips+2 mais tags

Bot Trading 101 | The 9 Best Trading Bot Tips of 2023

Comece a operar com o Cryptohopper gratuitamente!

Uso gratuito - não é necessário cartão de crédito

Vamos começar
Cryptohopper appCryptohopper app

Aviso Legal: O Cryptohopper não é uma entidade regulamentada. A operação de bots de criptomoeda envolve riscos substanciais, e o desempenho passado não é indicativo de resultados futuros. Os lucros mostrados nas capturas de tela do produto são para fins ilustrativos e podem ser exagerados. Somente se envolva na operações de bots se você possuir conhecimento suficiente ou procurar orientação de um consultor financeiro qualificado. Em nenhuma circunstância, o Cryptohopper aceitará qualquer responsabilidade perante qualquer pessoa ou entidade por (a) qualquer perda ou dano, no todo ou em parte, causado por, decorrente de ou em conexão com transações envolvendo nosso software ou (b) quaisquer danos diretos, indiretos, especiais, consequenciais ou incidentais. Por favor, observe que o conteúdo disponível na plataforma de social trading do Cryptohopper é gerado por membros da comunidade Cryptohopper e não constitui aconselhamento ou recomendações do Cryptohopper ou em seu nome. Os lucros mostrados no Marketplace não são indicativos de resultados futuros. Ao usar os serviços do Cryptohopper, você reconhece e aceita os riscos inerentes envolvidos na operação de criptomoedas e concorda em isentar o Cryptohopper de quaisquer responsabilidades ou perdas incorridas. É essencial revisar e compreender nossos Termos de Serviço e Política de Divulgação de Risco antes de usar nosso software ou se envolver em qualquer atividade de operação. Consulte profissionais da área jurídica e financeira para obter orientação personalizada com base em suas circunstâncias específicas.

©2017 - 2024 Copyright by Cryptohopper™ - Todos os direitos reservados.