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What is a Good Stop Loss Bitcoin Order Setting Percentage?

Strategies of Setting Stop Loss Bitcoin Orders in BTCUSD Crypto Trading

Traders using a bitcoin strategy must have math calculations that calculate where the Stop-Loss Bitcoin Order should be placed.

A trader also can set a stop loss bitcoin order in accordance to the technical indicators used to set these stop loss bitcoin orders.

Certain indicators use mathematical formulas to calculate where the stop loss cryptocurrency orders should be set so as to provide an ideal exit point.

These bitcoin indicators can be used as the basis for setting these stop loss bitcoin orders.

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

Other traders just use a predetermined percent of their total bitcoin trading equity balance.

To set a ==22==stop--lossstop--loss--orderstoploss--order bitcoin order it is best to use one of the following percentage based methods:

Setting Stop Loss Bitcoin Order based on Percentage of Account Balance

This stop loss setting method is based on the percent of bitcoin trading account balance that the trader is willing 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 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 Stop Loss Bitcoin Orders based on the Bitcoin Account Balance Percent Method - What is a Good Stop Loss Bitcoin Order Setting Percentage

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