Can you set a trailing stop-loss on Coinbase pro?
Using Stops and Trailing StopsShare This
How to Use Stop Losses Effectively When Trading CryptocurrencyA great way to preserve capital or lock in gains when trading crypto is to use stops and trailing stops. With that said, you need a solid strategy to make stops work for you and not against you. Show Below we cover some basic strategy and lots of tips and tricks to ensure you get the most of out stops when trading cryptocurrency. Understanding the example of setting stops in the image above: In the example above, one would want to buy toward the bottom of the range (illustrated by the green box). Then one would place stops below that range. Stop 1 represents a somewhat tight stop right below the current range. You can see that tight stop would have been stopped out once or twice. Stop 2 represents a loose stop placed below a previous range. You can see that loose stop was not stopped out at all. The looser the stop, the more risk, but the less likely it is to hit. Try reducing your position size if you are going to loosen up your stop to reduce your risk. Try moving your stops up to lock in profits as soon as a new higher range is created. Keep reading to learn about detecting ranges. Stop Loss Basic StrategyA basic stop loss strategy might look something like this:
In other words, the basics are very simple. Still, there are a bunch of little details that can really help to understand. Below are some tips and tricks for placing stops. Some Tips and Tricks For Placing StopsHere are some stop loss and trailing stop tips:
That is the basics of using stops when trading crypto. Stops can be an excellent tool, but if you dont use them correctly you can end up eroding your portfolio fairly quickly by getting stopped out over and over before your coin has a chance to run. |