The Art of Stop-Loss: Fixed Percentage Stop-Loss vs Technical Level Stop-Loss—Which Fits You Better?

🎯 How to set a stop-loss? Usually there are two schools of thought:
1. Fixed percentage stop-loss: for example, risk no more than 2% of the principal per trade. The advantage is strong discipline; the downside is that it’s easy to be stopped out by normal market fluctuations.
2. Technical level stop-loss: place it beyond a key support/resistance level. The advantage is that the logic is sound; the downside is that if the stop-loss level is too far, it forces your position size to be very small.
Best practice:
Combine both. Set the stop-loss outside the technical level, and also calculate whether this stop-loss exceeds 2% of your total capital. If it does, reduce the position size—not the stop-loss room.
💡 Today’s golden quote: The stop-loss level is determined by the market, not your wallet. $ETH ‌$BTC ‌