StopLoss-Orders: useful or not to hedge portfolio risks? Your experiences?

[crypteria]

Hey guys,

I will go on holidays for some days and I am not sure how to handle the volatility of my crypto portfolio... During the past months I made different experiences with stop loss orders. Sometimes they worked quite well and helped to protect me from losing money, sometimes I was stopped out several times even though I placed the stop loss with 20% below the price. In that case yould made a lot of money without stop loss orders. How do you handle the risks? In cryptoland I am confused about how to manage my portfolio appropiate.

I am curious about your experiences.

Regards

crypteria

[l3pox]

commenting to follow as well

it really depends on my entry points and on my plans for each coin,
sometimes I like the project and don't care holding long term, if price falls I'll just buy more.

sometimes I use stops and short it on dumps, selling and rebuying lower.

entry point is key if you want long term holds,
taking profits on the way up as well so you make less risky.

[MissionPhailed]

I've never implemented a stop-loss strategy. In fact, I never have a strategy while trading and that's actually not very good. Personally, I'm kinda on the fence regarding stop-loss orders as it is possible to miss potentially gigantic profits.

Example: Ethereum rose to $12-14 in the spring of 2016, but gradually retreated to $8 towards the end of that year. However, it reached $400 six months later. A person who would have bought ETH in the spring of 2016 with a stop-loss order of 10-20%, would have probably missed the major surge of ETH in 2017 (unless this person would have re-entered ETH in the final months of 2016).

[richcorner100]

I've never implemented stop loss strategy too. Before buy some coin i always research and learn first about the fundamental that coin. If i feel the fundamental and their team of the coin/project solid then i will buy on the deep and hold for a few week/month.

[ChrisPop]

You need to know your portfolio. Research the fundamentals of each project/crypto-currency you're vested into and take decisions where to put your stop-losses. If,after you analysis,you think it is a strong coin and it's going to rise a lot in the future,place SL orders lower.

[Coffee2015]

You have to seek your need first.
at what volume and condition that you get in there
you have to decide it  after you know the parameter and your need to make it best condition.
A bit complicated

[Jaya912]

For me its depend on our strategy. But in coin trading, stop loss is not soo usefull.. since crypto volatility sometime has range of their volatility. I suggest to devide your fund. For example you buy coin, if the price goes up thats mean you have your trading in profit, but if goes down, you can buy again with your fund that you devide.

[ankylotic]

I've never implemented stop loss strategy too. Before buy some coin i always research and learn first about the fundamental that coin. If i feel the fundamental and their team of the coin/project solid then i will buy on the deep and hold for a few week/month.

some of my friend are using the stop loss strategy and i think it is doing really well for them and i think it is a really good weapon for short term trading.  there are many exchanges allows that strategy including bittrex and me also tried once but can't understand it but i think i will in the mean time and takes benefit from it.

[FrueGreads]

Not an expert here, but I would say that if you are experienced in trading you will probably not use a stop loss in very volatile markets. Or at least if you do it, you must have a big margin for the stop, so if you are already accepting a potential big loss, why would you need the stop loss. Also, right now the overall price of crypto is still increasing, so I guess that chances are, that even after a big fall on the price, it will probably rise up again, and probably to bigger values than it was before (talking about good coins here, like BTC or solid alts, like Ether).
Of course I normally just hold the coins, and don't try to do short term trade, so this makes sense to me on that perspective.

[usmanov123]

I think it depends a lot. I set up a stop loss for 17.5% just in case something can happen and I haven't planned to check Bittrex for a couple of days. And I got lucky to cancel it and didnt sell all my coins (that I suppose planning to the Moon) for super cheap price this week. But in some cases it is def good option

[notyours]

The deterrent of the losses is good. So also what I do is sell me if I see an altcoins falling down.
And I can buy it at a lower price. so what's happening is that I'm holding altcoins more and it's as high as I get.

But sometimes it's risky as your sales are on the rise. So you should know the trend of the market so you do not get caught.

[Ponylon]

I wouldn't recommend putting a stop loss order, crypto market are so volatile that you might miss on a big upheavel after a downtrend

and that happens usually within a matter of days, 10/20% increases

A stop loss is not hedging to start with, hedging is being invested in a different product/asset that moves against your main investment or that is not influenced/related by it

If you want to hedge invest in stocks, gold.. anything besides cryptocurrencies

[Victorycoin]

I've never implemented a stop-loss strategy. In fact, I never have a strategy while trading and that's actually not very good. Personally, I'm kinda on the fence regarding stop-loss orders as it is possible to miss potentially gigantic profits.

Example: Ethereum rose to $12-14 in the spring of 2016, but gradually retreated to $8 towards the end of that year. However, it reached $400 six months later. A person who would have bought ETH in the spring of 2016 with a stop-loss order of 10-20%, would have probably missed the major surge of ETH in 2017 (unless this person would have re-entered ETH in the final months of 2016).

Those are indeed some strong points, stop-loss especially if not effectively calculated and implemented, can take the shine off a would have been profitable trade, but amidst lots of uncertainties and volatility, it becomes reasonable to look over one's shoulders often and on. As a matter fact, the whole essence of use of stop-loss is just to create an opportunity to re-evaluate previous trading decisions in the light of new developments and then make necessary adjustments, it does not mean a terminal sell or buy.

[John Wick]

Stop loss orders are must things while trading with high volume. If you don't set them, you can lose everything in 1 night only. This help you to protect your capital.

[Wiss]

Stop loss orders are must things while trading with high volume. If you don't set them, you can lose everything in 1 night only. This help you to protect your capital.

and how are you handling this? so far as I know there exists no stop loss and take profit order on the exchanges - are you monitoring all the time your position?

[pdoublep333]

There are only 2 ways for long positions:
1) you have pretty big deposit and small position, so you can sit in drawdown for long time, in that case no stop loss needed.
2) you have small deposit with full position in 1 trade and maybe including some leverage. Definitely must put a stop loss

[nydiacaskey01]

I use stop loss orders only when the coin that I bought went on a bull run like BCH, since I am thinking that BCH price at that will will not hold on to $2,000 USD and since I already have a sure profit since I bought BCH when Its still, I processed a stop loss order so if in any case price dropped, your profits are still intact.

[carlfebz2]

I use stop loss orders only when the coin that I bought went on a bull run like BCH, since I am thinking that BCH price at that will will not hold on to $2,000 USD and since I already have a sure profit since I bought BCH when Its still, I processed a stop loss order so if in any case price dropped, your profits are still intact.

This is why stop loss are really important if you do know how to set-up it on a correct price point specially when you are already trying to protect your profits then it would really be a great move and always been a suggested thing to do. Stop loss will really helpful when you predictions and analysis would go into opposite way and just like on forex there are some trading platforms who do have buy orders which is really great on a very volatile market.

[taktik]

I use stop loss orders only when the coin that I bought went on a bull run like BCH, since I am thinking that BCH price at that will will not hold on to $2,000 USD and since I already have a sure profit since I bought BCH when Its still, I processed a stop loss order so if in any case price dropped, your profits are still intact.

This is why stop loss are really important if you do know how to set-up it on a correct price point specially when you are already trying to protect your profits then it would really be a great move and always been a suggested thing to do. Stop loss will really helpful when you predictions and analysis would go into opposite way and just like on forex there are some trading platforms who do have buy orders which is really great on a very volatile market.

Perhaps I will agree with your opinion and if these settings are correct then the losses can be avoided And generally have minimal. But I was disturbed today by the pricing of the Bitcoin cache and I think that this currency can shake the position of the real Bitcoin on the market.

[949miner]

if you mean stop loss orders on bitcoin and some altcoins, it is impossible to do so, there are some exchanges that does not accept you to do those kind of trades.
the only place in where you can setup a well trade with stop loss/ stop profit is just on some forex brokers in where they allow you to trade with altcoins/bitcoins.
It is difficult to find one of those brokers, simplefx and whaleclub are maybe the ones who let you do that.
But it is a nice strategy, only that you need some skills to develop it at 100%