Stop losses are often considered as sub-optimal tools that negatively affects the EV of your trades but I don't agree. I'm of the opinion that they are actually among the most important tools to make you profitable in crypto The risk with SLs is "death by a thousand cuts" (ie repeatedly taking trades that get stopped out and accumulating too many losing trades in a row), but people in crypto don't really die by thousand cuts They die because they oversize, and once their trades become losers, they are unable to close because of the usual loss aversion bias. Then they are either in a position where they take a massive drawdown that they will take a long time to offset, or in the worst case scenario they start martingaling and tilting, and their drawdown gets even more amplified. That's death in crypto, probably 95% of the time. In crypto there are so many opportunities for meaningful upside that the most important thing by far is managing your downside. Using stop losses enables you to precisely know what your downside is, and to make sure that you respect your plan of cutting once the stop gets hit. When you enter a trade, you shouldn't just "hope" it goes the right way without being crystal clear about what you'll do if it goes wrong. That's why setting a stop right at the beginning is so crucial. At the very least you should have a mental SL, but that's riskier because you'll find reasons not to respect it once you should. I consider this one of the most crucial risk management rules in crypto trading. - Crypto Narratives