Portfolio Stop Loss

[crabby]

Hi Everyone!

I hope we're all having a good week. I wanted to start a discussion on portfolio stop losses.

Essentially a portfolio stop loss will evaluate the performance of your entire portfolio and trigger when your performance drops. I wrote an article on this topic here:

Portfolio Stop Loss

What do you guys think? Is this a strategy that people should be using for their portfolios? Does anyone have experience using this strategy?

[hugeblack]

Selecting the option to stop losses when percentage changes away from setting resistance levels will lead you to lose your money.
Currency fluctuations are necessary to achieve gains and therefore the currency depreciation (crash) is a good indicator to buy more "if it is a reliable currency like BTC and not those shitcoins" and not place an order to sell it.
Unfortunately this option is not available to you portfolio as there are some good options for setting a stop loss like Time Period, Threshold, and Currency.

[sheenshane]

You simply advertise your trading bot platform huh, are you also a part of Shrimpy Team. Upon looking at your post history, you are dropping a link related to that site.

All trading bot platforms have on this kind of feature, you can set when to stop loss and to cut also your profit. I admit that trading bot is quite helpful to most traders but I only use those who already gained trust on this forum, and I think the best are Gunbot and 3commas trading platforms already did that. The important is a good trading bot platform where you can trust to handle your portfolio through connecting API.

There are no accurate algorithm tools to predict the market price and I think these are useful now to stop your losses in the market.

[BitMaxz]

You simply advertise your trading bot platform huh, are you also a part of Shrimpy Team. Upon looking at your post history, you are dropping a link related to that site.

All trading bot platforms have on this kind of feature, you can set when to stop loss and to cut also your profit. I admit that trading bot is quite helpful to most traders but I only use those who already gained trust on this forum, and I think the best are Gunbot and 3commas trading platforms already did that. The important is a good trading bot platform where you can trust to handle your portfolio through connecting API.

There are no accurate algorithm tools to predict the market price and I think these are useful now to stop your losses in the market.

Those two bots you mention are paid bots and it's not free but they have many useful features and strategies compared to other bots.

But for other traders(Beginners) who don't have a budget to use paid bots, there are some free and opensource bots alternatively to shrimpy, Gunbot and 3Commas.

Here are the two free opensource trading bot below that can be used for Stop Loss.

- Gekko Trading Bot
- Zenbot

Just want to share it here so that beginners who don't have a budget they can use those bot for free to use the feature called "Stop Loss"

[Bitum]

BitMaxz, did you use the open souce bots yourself? Maybe you can write a few words about that, I would be very interested. Is it worth trying it out, or is it just a waste of time? I would be very grateful. Or maybe there is a step by step description or report for it. Thank you

[BitMaxz]

BitMaxz, did you use the open souce bots yourself? Maybe you can write a few words about that, I would be very interested. Is it worth trying it out, or is it just a waste of time? I would be very grateful. Or maybe there is a step by step description or report for it. Thank you

I'm not tested yet the Zenbot but Gekko I tested it before and it is working fine the only difference on the paid and not paid trading bot is that free has less trading strategy compared to any paid trading bot but Gekko has a guide if you want to add more trading strategies.

You can find it from their documentation from here https://gekko.wizb.it/docs/introduction/about_gekko.html

Zenbot is recommended by many traders out there who tested it but they support fewer exchanges and never tested it yet but maybe in the future, I'm going to test them since Gekko is no longer maintained.

[exstasie]

Portfolio Stop Loss

What do you guys think? Is this a strategy that people should be using for their portfolios? Does anyone have experience using this strategy?

Interesting idea but I'm not a big fan. Stop losses should be specific to single market pairs.

This strategy could have you liquidating your entire portfolio because a single pair under-performed. Not only does that incur much bigger trading fees (vs. triggering a stop loss on a single pair) but it shakes you out of stronger markets where you may be unable to get your position back.

It takes a little more effort but setting pair-specific stop losses is way more sensible.

[Bitum]

BitMaxz, did you use the open souce bots yourself? Maybe you can write a few words about that, I would be very interested. Is it worth trying it out, or is it just a waste of time? I would be very grateful. Or maybe there is a step by step description or report for it. Thank you

I'm not tested yet the Zenbot but Gekko I tested it before and it is working fine the only difference on the paid and not paid trading bot is that free has less trading strategy compared to any paid trading bot but Gekko has a guide if you want to add more trading strategies.

You can find it from their documentation from here https://gekko.wizb.it/docs/introduction/about_gekko.html

Zenbot is recommended by many traders out there who tested it but they support fewer exchanges and never tested it yet but maybe in the future, I'm going to test them since Gekko is no longer maintained.

Thanks!

[el kaka22]

Once again an amazing article from crabby, dude is one of the best content writers in all of crypto world and I can say this as a content writer because it is quite difficult to write stuff that would attract the attentions of other people to make them read it, I have tried and failed many times as much as I made it worked as well so I know how hard it is to make a home run each time.

Stop loss is something I always adore anyway so having a portfolio stop loss would actually quite in my alley as well, when crypto falls it does fall all together usually aside from few exceptions and it looks like this could be great for those general times it happens. Why deal with putting stop loss on everything, just put one into your general portfolio and make sure you are safe when you are sleeping.

[dunfida]

You simply advertise your trading bot platform huh, are you also a part of Shrimpy Team. Upon looking at your post history, you are dropping a link related to that site.

All trading bot platforms have on this kind of feature, you can set when to stop loss and to cut also your profit. I admit that trading bot is quite helpful to most traders but I only use those who already gained trust on this forum, and I think the best are Gunbot and 3commas trading platforms already did that. The important is a good trading bot platform where you can trust to handle your portfolio through connecting API.

There are no accurate algorithm tools to predict the market price and I think these are useful now to stop your losses in the market.

Just looking on its name itself and post history then its clear that he's part of the shrimpy team.
This thread do just simply trying to advertise;

https://developers.shrimpy.io/
https://www.shrimpy.io/

Still takes time for it to establish its name yet there are other reliable options out there.

[Vispilio]

BitMaxz, did you use the open souce bots yourself? Maybe you can write a few words about that, I would be very interested. Is it worth trying it out, or is it just a waste of time? I would be very grateful. Or maybe there is a step by step description or report for it. Thank you

I'm not tested yet the Zenbot but Gekko I tested it before and it is working fine the only difference on the paid and not paid trading bot is that free has less trading strategy compared to any paid trading bot but Gekko has a guide if you want to add more trading strategies.

You can find it from their documentation from here https://gekko.wizb.it/docs/introduction/about_gekko.html

Zenbot is recommended by many traders out there who tested it but they support fewer exchanges and never tested it yet but maybe in the future, I'm going to test them since Gekko is no longer maintained.

Great advice, Zenbot looks to be the more active of the two so I'll definitely check it out,

with the developer of Gekko we spoke briefly in the past, and he is a genuine market enthusiast with great experience in crypto trading and the physical setup of various exchanges, so I attest that he is also a great resource for algorithmic strategies; he has now moved on to launching his own firm I think called Folkvang...

[GreatArkansas]

I treat stop loss is one of the best weapons in trading, cryptocurrency or non-cryptocurrency. Using it on a portfolio is also important, not only on day trading.
As I started trading and for sure there are some traders there who started without stop-losses on their trades, its so me. I am late to discover that stop loss for every trades is extremely important. If you really value your money, stop-loss is your friend.
That's why I also created and shared it here before one of my thread about stop-loss: http://One of the Best Weapons in Trading

[Kurokonobasuke]

Oh, so you’re just pointing the bot that can used in trading because when I click the link that you’ve posted it talks about the trading bot of Shrimp Team. Did you try to used this kind of trading bot? because if yes, you can share on us or give us a review about the trading bot that you are preferring. For me in choosing trading bot is very difficult because nowadays there are many scams or have a machine error it is because the bot is not fully function that has a leakage on it. That’s why I want to know if you experience to try this trading bot. If this bot is well-functioned, well it helps all the traders to prevent on losing in trade.

[FanEagle]

What do you guys think? Is this a strategy that people should be using for their portfolios? Does anyone have experience using this strategy?

Honestly I'm not following any specific strategy for my stoploss levels but my technical analysis itself providing me stoploss signals so that I am ensuring that I am always into safer hands regardless of any kind of market volatile scenarios. Stoploss is definitely needed for all the traders when they are into trading based on short term and mid term strategies. Yes, for long term traders stoploss is NOT needed with respect to highly recognized crypto assets trading.

Could you please explain here about what kind of mechanism you are trying to emphasize to this crypto community with your article? I hate to click clicks from this forum. So, it would be much better if you time time to elaborate your strategy within this forum like without needing to visit other web pages. 

[Sadlife]

Well most traders are probably doing it and diversifying their investments to different assets and have already implemented a stop loss especially in this times that Bitcoin tends to go crazy wild swings. You may short, as the bottomed is not yet confirmed and could possibly go down. I think it's a decent strategy but it has also some flaws like what if the price fake outs then the stop loss triggers but the reverse pump.

[Sanugarid]

Well most traders are probably doing it and diversifying their investments to different assets and have already implemented a stop loss especially in this times that Bitcoin tends to go crazy wild swings. You may short, as the bottomed is not yet confirmed and could possibly go down. I think it's a decent strategy but it has also some flaws like what if the price fake outs then the stop loss triggers but the reverse pump.

I just want to point out the others for diversifying their portfolio but doing with other crap coins. It is given that the market is volatile, so diversifying could make a possible profit from any direction, but somehow diversifying could give you the opposite of what you are trying to achieve, it's a strategy for those who risks a lot. Aside from it being too organic, investment in diversified portfolio have a equal reward.

[abel1337]

Well most traders are probably doing it and diversifying their investments to different assets and have already implemented a stop loss especially in this times that Bitcoin tends to go crazy wild swings. You may short, as the bottomed is not yet confirmed and could possibly go down. I think it's a decent strategy but it has also some flaws like what if the price fake outs then the stop loss triggers but the reverse pump.

I have a bad experience diversifying my investment into profit-making assets, I don't know why I got bad assets that time that makes me lose more than having my past investment/token. I should think it is bad luck? of course, I've researched the tokens I'm planning to buy but it hurt that I lose more than I could lose from my tokens. This might work on others but I think not on me. When I want to stop the loss I am buying stable tokens to avoid any more loss than I could get from buying other volatile coins that can recover the loss I got from other investments.

[Yatsan]

Well most traders are probably doing it and diversifying their investments to different assets and have already implemented a stop loss especially in this times that Bitcoin tends to go crazy wild swings. You may short, as the bottomed is not yet confirmed and could possibly go down. I think it's a decent strategy but it has also some flaws like what if the price fake outs then the stop loss triggers but the reverse pump.

I have a bad experience diversifying my investment into profit-making assets, I don't know why I got bad assets that time that makes me lose more than having my past investment/token. I should think it is bad luck? of course, I've researched the tokens I'm planning to buy but it hurt that I lose more than I could lose from my tokens. This might work on others but I think not on me. When I want to stop the loss I am buying stable tokens to avoid any more loss than I could get from buying other volatile coins that can recover the loss I got from other investments.

Well, you shouldn't buying many tokens. it's good to diversify your portfolio but don't go to the point that you are going to be a bag holder. Just invest on you think that would be good in a long run, and don't buy token that is volatile than bitcoin, if you are doing that you are just doing gambling! You didn't have strategy and just betting for a coin and hoping that it would pump. Just buy token that you think have a potential.

[Rebisco]

Well most traders are probably doing it and diversifying their investments to different assets and have already implemented a stop loss especially in this times that Bitcoin tends to go crazy wild swings. You may short, as the bottomed is not yet confirmed and could possibly go down. I think it's a decent strategy but it has also some flaws like what if the price fake outs then the stop loss triggers but the reverse pump.

I have a bad experience diversifying my investment into profit-making assets, I don't know why I got bad assets that time that makes me lose more than having my past investment/token. I should think it is bad luck? of course, I've researched the tokens I'm planning to buy but it hurt that I lose more than I could lose from my tokens. This might work on others but I think not on me. When I want to stop the loss I am buying stable tokens to avoid any more loss than I could get from buying other volatile coins that can recover the loss I got from other investments.

Well, you shouldn't buying many tokens. it's good to diversify your portfolio but don't go to the point that you are going to be a bag holder. Just invest on you think that would be good in a long run, and don't buy token that is volatile than bitcoin, if you are doing that you are just doing gambling! You didn't have strategy and just betting for a coin and hoping that it would pump. Just buy token that you think have a potential.

The ideal diversification is 3-4 tokens, it is not good diversification if you bought 10 tokens and above. And before you buy a token it is better if we will set a stop loss it is better if it is tight in order to protect our capital and lessen the risks that we are dealing.

[crabby]

Once again an amazing article from crabby, dude is one of the best content writers in all of crypto world and I can say this as a content writer because it is quite difficult to write stuff that would attract the attentions of other people to make them read it, I have tried and failed many times as much as I made it worked as well so I know how hard it is to make a home run each time.

Stop loss is something I always adore anyway so having a portfolio stop loss would actually quite in my alley as well, when crypto falls it does fall all together usually aside from few exceptions and it looks like this could be great for those general times it happens. Why deal with putting stop loss on everything, just put one into your general portfolio and make sure you are safe when you are sleeping.

I appreciate the feedback! We will keep doing everything we can to continue producing great content. Please let me know if you have any suggestions for future articles!