What are the best strategies for using ATR to set stop loss in cryptocurrency trading?

3 answers

• Dec 16, 2021 · 3 years ago
  One effective strategy for using ATR to set stop loss in cryptocurrency trading is to calculate the ATR value and then set the stop loss a certain percentage below the current price. For example, you could set the stop loss at 1.5 times the ATR value below the current price. This allows for some price volatility while still providing protection for your investment. Remember to regularly adjust the stop loss as the ATR value changes.
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• Dec 16, 2021 · 3 years ago
  Another strategy is to use ATR to set a trailing stop loss. This means that as the price of the cryptocurrency increases, the stop loss is adjusted upwards by a certain percentage of the ATR value. This allows you to capture more profits if the price continues to rise, while still protecting yourself from significant losses. It's important to regularly monitor the ATR value and adjust the trailing stop loss accordingly.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using ATR to set stop loss in cryptocurrency trading. They suggest calculating the ATR value and setting the stop loss a certain percentage below the current price. This strategy helps to protect your investment from sudden price drops while still allowing for some price volatility. Remember to regularly review and adjust the stop loss as the ATR value changes to ensure optimal risk management.
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