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Stop Loss Bitcoin Order Trigger Bitcoin Price

Most important question about setting your stop loss bitcoin order is how close or how far the stop loss cryptocurrency order should be set from the bitcoin price where you entered the position. Where you set this stop loss bitcoin order depends on various factors:

No fixed Bitcoin rules dictate stop loss placement for crypto orders. We rely on standard tips from Bitcoin traders. These help you set the stop loss order properly.

Some of general guidelines used to set stop loss crypto orders are:

One percent risk per bitcoin trade means the max loss you're okay with on a single deal. The rule says cap it at 2% of your full account.

2. Market Volatility - this is about how much the bitcoin price changes each day. If a bitcoin price of something usually goes up and down by 50 pips or more during the trading day, then you can't use a very close stoploss order crypto order. If you do, you might be kicked out of the bitcoin trade because of the usual bitcoin market price changes.

3. Bitcoin Risk to Reward ratio - risk reward ratio this is the measure of potential risk to reward. If the bitcoin market factors and conditions are favorable then it is possible to comfortably give your bitcoin trade more room when setting stop loss cryptocurrency orders. However, if the Bitcoin market is too choppy it then becomes too risky to trade bitcoin without a tight stop loss order bitcoin btcusd order then do not make the trade transaction at all. The risk : reward ratio is not in your favor & even setting a tight stoploss order won't guarantee profitable results. It would be wiser to search for a better bitcoin trading to trade at another time.

4. Bitcoin Position Size - A large bitcoin trade size means even a tiny price shift can risk a lot in percentage terms. Set a close stop-loss order to limit this. But the market might hit it too soon. Most times, use a smaller position size instead. This gives your trade room to move. Set a realistic stop-loss and cut the risk per trade.

5. Bitcoin Capital - If your account is undercapitalized then you'll not be able to set/place your stop loss order cryptocurrency orders accordingly, because you will have a large amount of your bitcoin capital invested in a single bitcoin trade position that will force you to set tight stop losses. If this is the case, you should start thinking seriously about whether you have enough trading bitcoin capital to trade the market in the first place.

6. Market Trend Conditions - If the bitcoin market is trending upward, a tight stop loss order bitcoin btcusd order might not be necessary. If on the other hand the bitcoin market trend is range bound and has no clear trend direction then you should use/set a tight stop loss order bitcoin btcusd order or not trade at all.

7. Chart Time-Frame - the bigger the btcusd chart time frame you trade, the bigger and larger the stop loss order level should be. If you were a scalper btcusd trader then your stop loss cryptocurrency orders would be set tighter than if you were a bitcoin day trader or a bitcoin swing trader. This is because if you are a bitcoin swing trader and you determine the bitcoin price will move up it doesn't make sense to set a very tight stop loss bitcoin order because if the bitcoin market swings a little your tight stop loss cryptocurrency order will be hit.

How you set a stop loss bitcoin order depends a lot on your trading style. Whatever method you go with, make sure you follow the guidelines above, and always apply them to your Bitcoin trade setup.

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