How does using ATR to set stop loss help minimize risks in cryptocurrency investments?

1 answers

• Javeria NawalDec 20, 2022 · 3 years ago
  Using ATR to set stop loss is a widely used practice in the cryptocurrency trading community. It helps traders manage their risks by providing a systematic approach to setting stop loss levels. By using ATR, traders can set stop loss levels that are based on the volatility of the market, rather than arbitrary price levels. This allows them to adapt to changing market conditions and avoid getting stopped out prematurely. Additionally, ATR can help traders avoid setting stop loss levels that are too tight, which can result in frequent stop outs and missed profit opportunities. Overall, using ATR to set stop loss is a valuable tool for minimizing risks in cryptocurrency investments.
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