I'm just curious to see what everyone is doing when doing a SELL stop loss, specifically the spread between the STOP PRICE and LIMIT PRICE.
I've always used 50% of whatever the USD spread is, so if it averages between 10% and .01 percent, I do 5%
Isn't that kind of arbitrary? Do you find yourself.....constantly getting stopped out?
Example, for a LIMIT PRICE of 32,000 I take 5% of that which is 1600 and add it to 32,000 to get my 33,600 STOP PRICE.
So you're a forex trader and you're trying to short Bitcoin during a bubble? Good luck!
Anyway, my stop losses are usually near important pivot points (below if I am long, above if I am short). I aim for a reward vs. risk ratio of 3:1 or better. So if my entry point can't net that much (i.e. my stop would be too wide, too much risk) then I don't take the trade.