Strategies of Setting StopLoss Bitcoin Orders in BTCUSD Trading

Traders using a bitcoin system must have math formulas showing where they should place the order.

One can also set a stop loss bitcoin order in accordance to the technical indicators used to set these orders. Certain indicators use mathematical equations to calculate where the stop loss cryptocurrency order should be set so as to provide an optimal and ideal market exit point. These indicators can be used as basis for setting these orders.

Other traders also place these orders according to a pre-determined risk : reward ratio. This method of setting depends upon certain math equations. For illustration a ratio of 50 pips stoploss can be used by a trader if the trade has the potential to make 100 pips in profit: this is a risk : reward ratio of 2:1

Others just use a predetermined percent of their total equity balance.

To set a stop loss order order it is best to use one of the following techniques:

1. Percentage of Bitcoin account equity balance

This is determined by the percentage of the account balance that the online trader is prepared to risk.

If you risk 2% of your account, set the stop order based on your trade size in buys or sells.

Example:

If a trader has a $100,000 account and risks 2%, the size of their Bitcoin trade comes straight from that 2% stop loss level.

2. Setting Stop Loss Bitcoin Order using Support & Resistance Levels

An alternative methodology for establishing stop loss parameters for btcusd involves referencing support and resistance zones marked on the charts.

Because stop loss btcusd crypto orders tend to gather at certain points, when the bitcoin price tests one of those areas, the other orders are triggered, one after another. Stoploss orders tend to gather just above or below the areas of resistance/support.

Resistance or support levels act as barriers for Bitcoin price movement. These levels are crucial for setting stop-loss orders. If such a barrier is broken, Bitcoin's price may move in the opposite direction of the original trade. However, if the levels hold, the price is likely to continue moving in the intended direction.

Stop Loss Bitcoin Order level using a resistance level

Stop Loss Bitcoin Order Level Setting Using a Resistance Line

Placing order above the resistance

Stop Loss Bitcoin Order level using a support Level

Stop Loss Bitcoin Order Level Using a Support Line - How to Set BTCUSD StopLoss Orders Using BTCUSD Trendlines Tutorial

Placing order below the Support Line

3. BTCUSD Trend-lines

Use a Bitcoin trend line to place stop loss orders right below the line. As long as the trend line holds, traders keep earning profits. The order locks in gains if the line breaks.

Stop Loss Bitcoin Order Level Set Below The Bitcoin Trend Line

Placing order below the bitcoin trend line

Examples of where to set this order using bitcoin trendlines.

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