2% trading strategy, can this be applied for crypto trading?

[justdimin]

Do you mean 2% for stop loss ? With high volatilitas of crypto, i think that too small percentace in crypto trading, for the better use minimum 3% to 5% for stop loss and take profit minimum 10%. Stop loss 2% can be better to use in stocks trading that has lower volatility than crypto.

2% trading strategy is not about stop loss, but a way to manage your funds when trading.

As long as you are trading a market and you want to enter a position, it is a normal way of saying you should not use more than 2% of the total amount you have to go in on that trade. That is one thing a lot of people always fail to do anyway and they either go all in, or just do whatever they please when going in on the trade which makes the outcome horrific at times, when things should not go in their favor.

With respect to stop loss, as long as you are not having a higher loss to lower profit ratio, then you are good, so in that case, you always set your own risk when it comes to stopping loss.

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[javainn]

While browsing investopedia, I read about  2% rule where you will limit your loss to only 2% of your total capital. 

Will this be applicable to crypto market? I always believe that you should wait for stock/crypto to gain atleast 20% to lock the profit but the 2% rule seems interesting.

Any insight? Anyone using this strategy?

limit losses to only 2% I think it's very difficult, it's done only for professional traders. for beginner traders it might be possible to be at a price at the top point, so I think losses can be determined if you look at real market conditions.

[Viscore]

While browsing investopedia, I read about  2% rule where you will limit your loss to only 2% of your total capital. 

Will this be applicable to crypto market? I always believe that you should wait for stock/crypto to gain atleast 20% to lock the profit but the 2% rule seems interesting.

Any insight? Anyone using this strategy?

limit losses to only 2% I think it's very difficult, it's done only for professional traders. for beginner traders it might be possible to be at a price at the top point, so I think losses can be determined if you look at real market conditions.

Not possible if you do it seriously and wanting to have it. Even new adopters can made it provided that they have to focus on their trades and look best opportunity as they can to achieve such goal.  It is our own determination and perseverance to drive for the success.

[Renaldi blackspadeteam]

yeah, this Cryptocurrency trading strategy is very feasible to try, the 2% profit per day is already normal rather than having to wait 20% to get an uncertain profit, but depending on whether the trader wants to use this strategy or not,

[jamids]

yeah, this Cryptocurrency trading strategy is very feasible to try, the 2% profit per day is already normal rather than having to wait 20% to get an uncertain profit, but depending on whether the trader wants to use this strategy or not,

OP doesn't mean 2% profit but 2% of his total capital that he would be trading at a time. It is a good strategy because your emotions would not be that compromise if you see that the trade doesn't go your way. Besides that, you can buy more because you are left with 98% of your capital so you can buy on the way down and then be able to profit when the price goes up.

However, this strategy is only ideal if you have big capital because if you have a small one then 2% might be too small that it is even lesser than the withdrawal fee. You should find your own strategy then which would be fitting to your capital.

[nicolas1979]

While browsing investopedia, I read about  2% rule where you will limit your loss to only 2% of your total capital. 

Will this be applicable to crypto market? I always believe that you should wait for stock/crypto to gain atleast 20% to lock the profit but the 2% rule seems interesting.

Any insight? Anyone using this strategy?

I think " hold "  and gain 20% is for people who use investment strategy not trading, specially day trading. Wrong rules can make you loss so please think again to set your stop loss and take profit point. You can use any gain ( % ) in your setting but I afraid must fit with your strategy. I believe 2% is possible for daily trading but in down trend investment strategy is more helpful.

[BitcoinTurk]

While browsing investopedia, I read about  2% rule where you will limit your loss to only 2% of your total capital. 

Will this be applicable to crypto market? I always believe that you should wait for stock/crypto to gain atleast 20% to lock the profit but the 2% rule seems interesting.

Any insight? Anyone using this strategy?

It is a method I previously used for my foreign exchange investments, but I cannot say that I use too much in the cryptocurrency sector. As there is more volatility in the cryptocurrency sector compared to other investment instruments, the rate of 2% will be quite low, which may be true investments. However, as I have stated, I think that this ratio should be used more in this sector since this ratio is quite insufficient both in terms of profit margin and loss. This ratio should be determined by the investor completely and should not be too high due to the high risk of the sector.

[Tynovten_]

For the cutloss target it is very efficient but the profit target for 2% is very small. And it's 20%-30% is very efficient for profit. The target is very must for trading that is just so not get loss very deeply

[Renaldi blackspadeteam]

yeah, this Cryptocurrency trading strategy is very feasible to try, the 2% profit per day is already normal rather than having to wait 20% to get an uncertain profit, but depending on whether the trader wants to use this strategy or not,

OP doesn't mean 2% profit but 2% of his total capital that he would be trading at a time. It is a good strategy because your emotions would not be that compromise if you see that the trade doesn't go your way. Besides that, you can buy more because you are left with 98% of your capital so you can buy on the way down and then be able to profit when the price goes up.

However, this strategy is only ideal if you have big capital because if you have a small one then 2% might be too small that it is even lesser than the withdrawal fee. You should find your own strategy then which would be fitting to your capital.

yes sir right, can you give me a minimum capital advice for this type of Cryptocurrency trading strategy, after that I will look for strategies that match the capital that I have now

[Pattart]

yeah, this Cryptocurrency trading strategy is very feasible to try, the 2% profit per day is already normal rather than having to wait 20% to get an uncertain profit, but depending on whether the trader wants to use this strategy or not,

OP doesn't mean 2% profit but 2% of his total capital that he would be trading at a time. It is a good strategy because your emotions would not be that compromise if you see that the trade doesn't go your way. Besides that, you can buy more because you are left with 98% of your capital so you can buy on the way down and then be able to profit when the price goes up.

However, this strategy is only ideal if you have big capital because if you have a small one then 2% might be too small that it is even lesser than the withdrawal fee. You should find your own strategy then which would be fitting to your capital.

Yeah actually it doesn't have to be a 2% limit, you're right every trader can develop their own strategy, according to their financial capabilities, of course it's impossible for you to use a 2% limit if your capital is small right? then formulate a strategy depending on yourself..

[andriarto]

For the cutloss target it is very efficient but the profit target for 2% is very small. And it's 20%-30% is very efficient for profit. The target is very must for trading that is just so not get loss very deeply

i think that if 2% is a daily target, that is big enough. but if the trader is enough with 2% profit for 1 month, of course it is a safe trade. where it is not hard to reach target

[minhkhoa]

I think 2% limit is safe to cut losses in investment, but you can not always wait to see 2% and cut losses. This will make you tired when you have to sit on the computer 24/24 and can not place orders correctly.

[CASTIEL05]

Risk management depends upon when will you expect to exit. If you have risk management, you will look for risk of ruin over than taking of profits. If you can see that your risk is greater than your profit then do not buy the specific coin unless you will see a momentum trade.
2% rule is somehow a guidance for us that our biased did not materialize. Therefore, if we are lose at 2% in our portfolio then we cut it fastly.