I'm still figuring out how to manage risk on $BTC and trailing stops seem like a good idea in theory, but I've been getting whipsawed out. Does anyone find them genuinely effective here, or am I missing something crucial in my implementation?
I've had similar experiences with whipsaws on BTC using trailing stops. Do you adjust your trailing stop percentage based on the current volatility, or do you keep it fixed? I wonder if that makes a difference.
I've had similar experiences with whipsaws on BTC using tighter trailing stops. For high volatility assets, I've found that a wider percentage-based trailing stop, or even a time-based stop, can be more effective than a fixed dollar amount.
Trailing stops on BTC can be tough. Many find hard stops at key support levels or a percentage of daily ATR more effective than a traditional trailing stop, which can get triggered too easily by natural volatility.