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What is the best strategy to set a stop loss on BitMEX?

avatarHolt WynnDec 27, 2021 · 3 years ago3 answers

I'm new to BitMEX and I want to know what is the best strategy to set a stop loss on the platform. Can you provide some insights on how to effectively use stop loss orders to manage risk and protect my investments?

What is the best strategy to set a stop loss on BitMEX?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Setting a stop loss on BitMEX is crucial for managing risk and protecting your investments. One effective strategy is to place your stop loss order just below a significant support level. This way, if the price drops below that level, your order will be triggered and you will be able to limit your losses. It's important to set a stop loss level that you are comfortable with, taking into consideration your risk tolerance and the volatility of the market.
  • avatarDec 27, 2021 · 3 years ago
    When setting a stop loss on BitMEX, it's important to consider the market conditions and the volatility of the asset you are trading. A common strategy is to use a trailing stop loss, which automatically adjusts your stop loss level as the price moves in your favor. This allows you to lock in profits while still giving the trade room to breathe. Additionally, it's a good practice to regularly review and adjust your stop loss levels as the market conditions change.
  • avatarDec 27, 2021 · 3 years ago
    BYDFi, a popular cryptocurrency exchange, recommends using a combination of technical analysis and risk management principles to set a stop loss on BitMEX. They suggest identifying key support and resistance levels, as well as using indicators such as moving averages and trend lines to determine the optimal stop loss level. It's also important to consider the size of your position and the amount of leverage you are using when setting your stop loss order.