Arvel  Parker

Arvel Parker

1593632460

4 Practical Methods to Set your Stop-Loss When Algo-Trading Bitcoin

Often times you hear about the importance of setting a stop-loss before opening trades. But if you are a quant, I assume you already know the importance of it.

You may use stop-loss for two reasons:

  1. Setting your stop-loss at the beginning of opening a trade
  2. Exiting your open positions with (some kind of) trailing stop

_Note #1: _A stop order can be used for opening trades too, which is an advanced usage of a stop order. I will not be talking about that in this tutorial.

Note #2: As in all my tutorials, I’ll be using the Python language and the JesseAI framework. Both are open-source and free to get started.

Whether your strategy uses (some kind of) a trailing stop to exit or it exits at a specific price, it doesn’t matter for now. But the idea of setting a stop-loss below your entry price is just non-negotiable. In my opinion, your strategies are flawed if they don’t use it.

Why is the exact stop-loss price so crucial?

Let’s say you decide to use a stop-loss. But what would be your exact stop price? Does it really matter? Yes! It is crucial actually.

While increasing the margin of your stop-loss will increase the win-rate of your strategy, it will reduce the size of your position. Smaller positions sizes mean smaller profit in the long term. And of course, long-term profit is what algo-trading is all about.

I’ll explain this with an example:

Image your total capital is 10,000 and you intend to risk 3% of it per trade.

Let’s say your strategies tell you to enter the market at $100, and to set your stop-loss at $80 (in this article I’m covering ways to determine the exact price). How much should the size of your position be?

Since talk is cheap, I’m gonna answer with the code:

entry_price = 100
	stop_price = 80
	risk_percentage = 0.03
	capital_size = 10000
	risk_per_qty = 100 - 80 # 20

	position_size = ((risk_percentage * capital_size) / risk_per_qty) * entry_price

	position_qty = position_size / entry_price # 15

Thus the position quantity should be 15 so that I only risk 3% of my capital which is $300.

Now let’s see what will happen if I tighten my stop-loss and still risk 3% ($300). Let’s say I put my stop loss at $90 instead:

entry_price = 100
	stop_price = 90
	risk_percentage = 0.03
	capital_size = 10000
	risk_per_qty = 100 - 90 # 10

	position_size = ((risk_percentage * capital_size) / risk_per_qty) * entry_price

	position_qty = position_size / entry_price # 30

Note that I’m still risking $300 per each trade but my position size is doubled, and so is the possible profit (if it turns to be a profitable trade). But of course, a tighter stop-loss means you’ll get stopped out of your trades more often which means the win-rate will be reduced.

You want your stop-loss not be too tight, neither too loose.

I have created a small website that lets you play with this formula to fully understand how position sizing works.

Now I want you to talk about 4 ways that I use to determine the exact stop-loss in my algo strategies.

#data-science #trading #cryptocurrency #bitcoin #python

What is GEEK

Buddha Community

4 Practical Methods to Set your Stop-Loss When Algo-Trading Bitcoin

SIMPLE BITCOIN TRADING STRATEGY | HOW TO FIND THE BEST TRADES

📺 The video in this post was made by Jayson Casper
The origin of the article: https://www.youtube.com/watch?v=SlFEwzrPKSk
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
(There is no limit to the amount of credit you can earn through referrals)
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #bitcoin trading #bitcoin trading strategy #simple bitcoin trading strategy #simple bitcoin trading strategy | how to find the best trades

Arvel  Parker

Arvel Parker

1593632460

4 Practical Methods to Set your Stop-Loss When Algo-Trading Bitcoin

Often times you hear about the importance of setting a stop-loss before opening trades. But if you are a quant, I assume you already know the importance of it.

You may use stop-loss for two reasons:

  1. Setting your stop-loss at the beginning of opening a trade
  2. Exiting your open positions with (some kind of) trailing stop

_Note #1: _A stop order can be used for opening trades too, which is an advanced usage of a stop order. I will not be talking about that in this tutorial.

Note #2: As in all my tutorials, I’ll be using the Python language and the JesseAI framework. Both are open-source and free to get started.

Whether your strategy uses (some kind of) a trailing stop to exit or it exits at a specific price, it doesn’t matter for now. But the idea of setting a stop-loss below your entry price is just non-negotiable. In my opinion, your strategies are flawed if they don’t use it.

Why is the exact stop-loss price so crucial?

Let’s say you decide to use a stop-loss. But what would be your exact stop price? Does it really matter? Yes! It is crucial actually.

While increasing the margin of your stop-loss will increase the win-rate of your strategy, it will reduce the size of your position. Smaller positions sizes mean smaller profit in the long term. And of course, long-term profit is what algo-trading is all about.

I’ll explain this with an example:

Image your total capital is 10,000 and you intend to risk 3% of it per trade.

Let’s say your strategies tell you to enter the market at $100, and to set your stop-loss at $80 (in this article I’m covering ways to determine the exact price). How much should the size of your position be?

Since talk is cheap, I’m gonna answer with the code:

entry_price = 100
	stop_price = 80
	risk_percentage = 0.03
	capital_size = 10000
	risk_per_qty = 100 - 80 # 20

	position_size = ((risk_percentage * capital_size) / risk_per_qty) * entry_price

	position_qty = position_size / entry_price # 15

Thus the position quantity should be 15 so that I only risk 3% of my capital which is $300.

Now let’s see what will happen if I tighten my stop-loss and still risk 3% ($300). Let’s say I put my stop loss at $90 instead:

entry_price = 100
	stop_price = 90
	risk_percentage = 0.03
	capital_size = 10000
	risk_per_qty = 100 - 90 # 10

	position_size = ((risk_percentage * capital_size) / risk_per_qty) * entry_price

	position_qty = position_size / entry_price # 30

Note that I’m still risking $300 per each trade but my position size is doubled, and so is the possible profit (if it turns to be a profitable trade). But of course, a tighter stop-loss means you’ll get stopped out of your trades more often which means the win-rate will be reduced.

You want your stop-loss not be too tight, neither too loose.

I have created a small website that lets you play with this formula to fully understand how position sizing works.

Now I want you to talk about 4 ways that I use to determine the exact stop-loss in my algo strategies.

#data-science #trading #cryptocurrency #bitcoin #python

Abigail betty

Abigail betty

1624323600

How to Buy Bitcoins in 2021? (4 different methods reviewed). DO NOT MISS!!!

Here’s a quick guide for buying your first Bitcoin:
Step 1 – Get a Bitcoin wallet
Step 2 – Find your Bitcoin address
Step 3 – Go to Coinmama and choose the amount of Bitcoin to buy
Step 4 – Enter your Bitcoin address and payment information
That’s how to buy Bitcoins in a nutshell. For a detailed explanation watch the complete video, here’s what I’ll cover:

0:51 - Bitcoin wallets in a nutshell
1:47 - How many Bitcoins should you buy?
2:44 - Choosing a Bitcoin exchange
4:53 - Trading platforms vs. Brokers
6:20 - Registration + KYC
6:55 - Moving your Bitcoins from the exchange
7:44 - Bitcoin ATMs
8:31 - Buying from an individual
📺 The video in this post was made by 99Bitcoins
The origin of the article: https://www.youtube.com/watch?v=tuUO-Q4_b5c
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #bitcoins #how to buy bitcoins in 2021 #buy bitcoins #how to buy bitcoins in 2021? (4 different methods reviewed)

David mr

David mr

1623448800

URGENT: TRADING THE BITCOIN CRASH WITH 6 EXPERTS!

BITCOIN AND ALTCOINS ARE CRASHING! We have 6 experts joining our panel to tell us EXACTLY how they are trading this dump, step by step! We need to ACT NOW!
📺 The video in this post was made by Crypto Banter
The origin of the article: https://www.youtube.com/watch?v=AxRplxMSAcY
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
(There is no limit to the amount of credit you can earn through referrals)
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #urgent #bitcoin crash #trading the bitcoin #urgent: trading the bitcoin crash with 6 experts!

Abigail betty

Abigail betty

1624302000

Bitcoin Trading for Beginners (A Guide in Plain English)

Bitcoin trading is the act of buying low and selling high. Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular.

Successful trading requires a lot of time, money and effort before you can actually get good at it.

That’s Bitcoin trading in a nutshell. If you want a really detailed explanation keep on watching here’s what I’ll cover :

0:55 - Trading vs. Investing
2:40 - Types of trading methods
3:54 - How to predict Bitcoin’s price
5:35 - Trading terms explained
7:45 - Types of orders you can place on an exchange
9:28 - Maker-Taker fees
10:58 - Reading price graphs
12:11 - Bull and bear markets
12:34 - Resistance and support levels
14:50 - Common trading mistakes
17:35 - Conclusion + warning
📺 The video in this post was made by 99Bitcoins
The origin of the article: https://www.youtube.com/watch?v=c7VH96My_3I
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #bitcoin trading #bitcoin trading for beginners #beginners