Everyone says, “set your stop closer, protect your deposit” 🙃
I tested it over 5 years. Momentum strategy, holding for a day:
• 8% stop: about 40% of trades hit the stop, average return of +1.26% per trade
• 3% stop: now 75% (!) hit the stop, and returns drop to +0.44%
In short, a tight stop doesn’t protect you—it knocks you out. After a move, the price bounces around, and you get taken out right before it starts moving in your favor 😅
You need a stop. But not where it “feels safer”—put it where the idea is actually invalidated.
Measure, don’t believe.
#трейдинг #крипта #stoploss
I tested it over 5 years. Momentum strategy, holding for a day:
• 8% stop: about 40% of trades hit the stop, average return of +1.26% per trade
• 3% stop: now 75% (!) hit the stop, and returns drop to +0.44%
In short, a tight stop doesn’t protect you—it knocks you out. After a move, the price bounces around, and you get taken out right before it starts moving in your favor 😅
You need a stop. But not where it “feels safer”—put it where the idea is actually invalidated.
Measure, don’t believe.
#трейдинг #крипта #stoploss