Here are examples of how to avoid non-execution of Stop Loss (SL) and Take Profit (TP) orders in long or short trades and avoid quotation:
1. Choosing the appropriate times for trading:
Example: Avoid trading during periods of major announcements such as mainnet upgrades or regulatory announcements that may lead to significant price fluctuations.
2. Use Guaranteed Stop-Loss Orders:
Example: Using trading platforms that offer guaranteed stop-loss orders, such as some services provided by Binance, which guarantee that the order will be executed at the specified price regardless of price gaps.
3. Liquidity monitoring:
Example: Trade popular cryptocurrencies such as Bitcoin or Ethereum instead of smaller currencies that may suffer from a lack of liquidity, ensuring orders are executed quickly and at a favorable price.
4. Improve connection speed:
- Example: Use a fast and stable internet connection, such as a fiber optic connection, to ensure that orders are executed quickly without delay, especially when trading on high-frequency platforms.
5. Diversification of assets:
Example: Distributing investments between several digital currencies such as Bitcoin, Ethereum, and Litecoin instead of focusing on only one currency to reduce the risks associated with a specific asset.
6. Stay up to date:
Example: Follow news of cryptocurrencies and new projects.
7. Use of technical and fundamental analysis:
Example: using indicators such as Bollinger Bands and MACD to analyze price movement, and reading project whitepapers to understand the fundamentals that may affect the value of the currency.
8. Adjust deal sizes:
- Example: If you have $10,000 in capital, limit the trade size so that you do not lose more than 1-2% of your capital in any one trade, i.e. $100-200, using stop loss orders.
By following these examples and tips, you can improve your cryptocurrency trading experience and reduce the risks associated with unexpected order execution.
