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What is a Good Stop Loss Bitcoin Order Setting Percentage?

How to Place Stop Loss on Bitcoin Orders in BTCUSD Crypto Trades

Traders using a bitcoin strategy must have math formulas that figure out where to place the Stop-Loss Bitcoin Order.

Traders can place a stop loss order on bitcoin based on the technical tools that guide those stop loss choices.

Some indicators use math formulas to figure out the best spot to set your stop loss orders, helping you lock in an ideal exit point.

Bitcoin indicators serve as effective benchmarks for setting stop-loss orders in cryptocurrency trading frameworks.

Traders also place these stop loss cryptocurrency orders according to a pre-determined risk : reward ratio. This method of setting stop loss btcusd orders depends upon certain math formulas. For example illustration, a ratio of 20 pips stop loss order can be used by a bitcoin trader if the trade transaction position has potential to make 40 pips in profit: this is a risk : reward ratio of 2:1

Alternatively, other market participants opt to risk a predefined percentage of their total account equity dedicated to bitcoin trading.

Set stop loss orders for Bitcoin with these percentage methods. Pick one that fits your plan.

Placing Bitcoin Stop Loss Orders Based on Account Balance Percentage

This way of setting a stop loss is based on how much of their bitcoin account the trader wants to risk when trading.

If a btc/usd trader is willing to risk 2 % of account balance then the trader determines how far he will set the order level based on the open position size which he has bought or sold.

Example:

If a trader has got a $10,000 account and is willing to risk 2 %

  • If a bitcoin trader buys 0.1 Contract or 0.1 Standard Lot (1 Mini Lot)
    1 pip = $1 dollars

    Then setting at 2 % - 2% StopLoss Bitcoin Order Setting Percent

    2 % is $ 200 dollars

    200 /1 = 200 pips

    Stop-Loss = 200 pips

  • If a btc usd trader buys 0.5 contracts or 0.5 Standard Lots
    1 pip = $5

    Then setting at 2 % - 2% StopLoss Bitcoin Order Setting Percent

    2 % is $ 200 dollars

    200 /5 = 40 pips

    Stop-Loss = 40 pips

  • If a bitcoin trader buys 1 contract or 1 Standard Lot
    1 pip = $10

    Then setting stop loss at 2% - 2% Stop Loss Bitcoin Order Setting Percent

    2 % is $ 200

    200 /10 = 20 pips

    Stoploss = 20 pips

How to Set Bitcoin Stop Loss Orders Based on a Percentage of Your Bitcoin Account - What is a Good Percentage to Set for a Bitcoin Stop Loss Order

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