In the fast-paced realm of crypto trading, an effective stop loss strategy is crucial for mitigating risks and preserving profits. Wick Hunter offers two distinct options for stop loss orders, each equipped with versatile settings to cater to the diverse needs of traders.
Key Settings for Stop Loss Orders
Before delving into the types of stop loss orders, it's essential to understand the common settings that apply to both options:
Stop Loss Type:
Account Balance Loss: Based on your total account value.
Current Entry Price: Based on your entry price, including any Dynamic Cost Averaging (DCA).
Initial Entry Price: Based on your original entry price, unaffected by DCA impacts
Stop Loss Percent: Input the stop loss value in percentage based on the type of Stop Loss you are using. For example, if you enter 3% and are using Account Balance Stop Loss then the Stop Loss will be placed at the distance the pair can move so you lose only 3% of your account.
Single Stop Loss
The Single Stop Loss feature allows you to set a singular stop loss based on the specified conditions (as coverd above). Additionally, it includes the innovative "Laddered mode," enhancing your control over stop loss adjustments:
Ladder Mode:
In the above picture, ladder mode allows you to close part of your position at Take Profit #1 and move the stop loss for the remainder of your position to your entry price. As you can see in the picture, the price subsequently decreased. Without ladder mode, none of your entire position would have closed (if only using Take Profit #2), potentially resulting in missed profits. By using ladder mode, you are able to capture a greater profit.
This can be particularly useful in volatile markets where prices can fluctuate rapidly. If the price goes up to a 1.2% profit and then back down, the ladder mode feature could close 50% of the position at a 1% take profit, with the remainder is closed at the average entry price. This can lead to higher take profits and a higher percentage of winning trades.
There are two options for ladder mode within Wick Hunter:
Level based — This option moves the stop loss to the average entry price when X take profit is filled and continues to follow it. For example, if you have 5 take profits and use level based with a setting of 2, once your second take profit is hit, your stop loss will be moved to the entry price. When your third take profit is hit, the stop loss will be moved to the first take profit. This option always keeps the stop loss two levels behind.
Average Entry price — This option moves the stop loss to the average entry price once X take profit is hit. For example, if you have 5 take profits and set this option to 3, then your stop loss will be moved to the average entry price when your third take profit is hit and will stay there for the remainder of the trade.
Multiple Stop Loss
The Multiple Stop Loss feature enables traders to set multiple stop loss percentages based on the percent of position size and stop loss percent. This adds granularity to your risk management strategy, allowing for tailored adjustments to different parts of your position.
In conclusion, Wick Hunter's comprehensive stop loss options provide traders with the flexibility and control needed to navigate the unpredictable crypto market. Whether opting for a Single Stop Loss with Laddered mode or implementing Multiple Stop Loss percentages, traders can customize their strategies to align with their risk tolerance and trading preferences. Experiment with these features, analyze their impact on your trades, and refine your approach for a more resilient and profitable trading experience.