When to stop.

Sep 22, 2019 at 07:12
2,865 Angesehen
61 Replies
Mitglied seit Jun 29, 2019   65 Posts
Sep 22, 2019 at 07:12
You might say that setting a stop is an art; you need to make sure that your stop is set so that your trade can handle smaller jumps and drops in price while protecting you from losing your shirt if the market doesn’t go your way. A stop that’s too narrow may lead you to reenter the market, causing you to get stopped out again. That can cause more damage to your account balance than if you entered a stop that was too wide or if you had no stop at all.
forex_trader_688163
Mitglied seit Feb 28, 2019   140 Posts
Sep 22, 2019 at 07:15
It depends on your strategy. Either to cut earlier or let broker stop your trade.
Mitglied seit Sep 03, 2019   32 Posts
Sep 23, 2019 at 08:37
45656 posted:
You might say that setting a stop is an art; you need to make sure that your stop is set so that your trade can handle smaller jumps and drops in price while protecting you from losing your shirt if the market doesn’t go your way. A stop that’s too narrow may lead you to reenter the market, causing you to get stopped out again. That can cause more damage to your account balance than if you entered a stop that was too wide or if you had no stop at all.
It is rather an ordered art. Setting a stop level is part of your money management and the level of risk depends on it. That is, this level must be accurately calculated and established according to market conditions and based on the specifics of the tools that you use.
Mitglied seit Sep 23, 2019   10 Posts
Sep 23, 2019 at 11:08
Market conditions dictate everything for me. Stop loss, take profit and hence risk reward. There is no point using a tight stop loss because you 'Want to', if the market is highly volatile then it will blow through your stop loss. Let the market decide and it will reward you
Mitglied seit Aug 27, 2017   994 Posts
Sep 23, 2019 at 14:29
blackbridge posted:
Market conditions dictate everything for me. Stop loss, take profit and hence risk reward. There is no point using a tight stop loss because you 'Want to', if the market is highly volatile then it will blow through your stop loss. Let the market decide and it will reward you

Good decision; even I always avoid tight stop loss; a logical stop loss is much meaningful instead of tight SL.
Mitglied seit Jul 31, 2019   28 Posts
Sep 24, 2019 at 09:46
Don’t just put random stop loss. This should be set after you have studied the markets, tested your alternative plans according to that.
Mitglied seit Sep 25, 2019   24 Posts
Sep 25, 2019 at 08:41
the stoploss level should be choosed by analysis of the chart but remember that you sould keep a smart risk ratio of your loss and profit. Use any tools that help detect supports and resistances and set stoploss according to these levels because the market always moves in levels range.
Mitglied seit Jan 05, 2016   1189 Posts
Sep 25, 2019 at 09:29
ATR[D1] / 3 = SL

This formula allows your SL to not exceed the daily ATR by 1/3, if you have to let your trade continue going bad, then you aren't minimizing your risk.

As yourself this. Would you rather close out a ticket with a -30 pip stoploss or with a -300 pip stoploss?

Anyone who allows a bad ticket to run -300 pips against the account or worse, simply isn't using realistic risk management.

Letting a bad ticket run is a horrible idea.

It's no Big DEAL if you closed out the ticket with -30 pips, don't just immediately create a new ticket, wait for the next high probability trade setup to manifest in the markets. THEN trade.
Bad trades happen, everyone gets them. Minimizing the risk to the account is the highest priority. Protect the investment capital at all times.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
Mitglied seit Jan 05, 2016   1189 Posts
Sep 25, 2019 at 09:33
You could also just as easily calculate out a reasonable TAKEPROFIT this way as well.

ATR[D1] / 2 = TP

This formula provides you takeprofit of 1/2 the daily ATR.

If your daily ATR = 100, then this would give you a TP of 50 pips, and an SL of 33 pips, using the previously discussed forumla.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Mitglied seit Sep 25, 2019   10 Posts
Sep 25, 2019 at 09:58
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month
Mitglied seit Aug 27, 2017   994 Posts
Sep 25, 2019 at 11:10
TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

In every trade? Really? If yes; then you should lose almost 60% when you face consistent 3 SL; isn’t?
Mitglied seit Apr 18, 2017   920 Posts
Sep 30, 2019 at 15:10
Adribaasmet posted:
TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

In every trade? Really? If yes; then you should lose almost 60% when you face consistent 3 SL; isn’t?

Very valid question; no doubt 20% is huge; even I consider myself not to use any opportunity with more than 2% risk ratio!
Mitglied seit Oct 04, 2015   26 Posts
Oct 06, 2019 at 12:51
TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

25 days of trading without a losing trade means that your strategy is profitable so far.
If the strategy continues to be profitable, and the stop loss at 20% of your equity is never reached, then in that case a stop loss would not be needed
forex_trader_795593
Mitglied seit Oct 09, 2019   32 Posts
Oct 09, 2019 at 12:04
I have seen some comments stating that some random stop loss is a way. Never ever do a random stop loss because it is like randomly study a part of topic thinking it will surely coming in the exam while ignoring other, as a result, you get a poor grade. That is like with random SL. Randomly setting SL leads to potential loss.
So for me, I always put the SL based on the market conditions and risk management.
Mitglied seit Apr 18, 2017   718 Posts
Oct 09, 2019 at 16:19
fancydandy posted:
I have seen some comments stating that some random stop loss is a way. Never ever do a random stop loss because it is like randomly study a part of topic thinking it will surely coming in the exam while ignoring other, as a result, you get a poor grade. That is like with random SL. Randomly setting SL leads to potential loss.
So for me, I always put the SL based on the market conditions and risk management.

Good choice; same from me! I always set my SL & TP according to the position of nearest support & resistant levels;
Mitglied seit Oct 24, 2019   45 Posts
Nov 27, 2019 at 11:51
It depends on your trading strategy and market condition If you are sustaining without any loss it counts as well.
Revenue is vanity, profit is sanity, but cash is king
Mitglied seit Aug 27, 2017   994 Posts
Nov 27, 2019 at 14:21
Baazex posted:
It depends on your trading strategy and market condition If you are sustaining without any loss it counts as well.

Traders can use stop loss trading tool in this case; don’t need to wait for the result lively!
Mitglied seit Jul 01, 2019   30 Posts
Nov 28, 2019 at 21:34
I think it's all relative. There are a lot of strategies now that simply won't work with such an approach. Of course, if you remember about the reserve and the amount of capital in general, if it allows, and you do not let the situation go on its own, and constantly analyze what is happening on the market, then even a narrow stop will not limit you from the profit. Again, everything depends on how each trader is used to trading. I always have some disputes with my friends in the sphere, because absolutely everyone has their own opinion. Everyone already has some experience and copes with these or those situations in different ways. Therefore, it is impossible to say that this approach can become universal and help in any situation without exception. Just try what will suit to you.
Mitglied seit Jan 05, 2016   1189 Posts
Nov 28, 2019 at 21:46
Shalidor posted:
I think it's all relative. There are a lot of strategies now that simply won't work with such an approach. Of course, if you remember about the reserve and the amount of capital in general, if it allows, and you do not let the situation go on its own, and constantly analyze what is happening on the market, then even a narrow stop will not limit you from the profit. Again, everything depends on how each trader is used to trading. I always have some disputes with my friends in the sphere, because absolutely everyone has their own opinion. Everyone already has some experience and copes with these or those situations in different ways. Therefore, it is impossible to say that this approach can become universal and help in any situation without exception. Just try what will suit to you.


And how will you deal with a Black Swan or other such equally colorful named catastrophic market move?
You're just going to allow that kind of event to have a catastrophic impact against the trading account?

Absurd. Risk management is the #1 priority for successful investing. Just because you feel your account is large enough to eat a -3000 pip negative spike against does NOT mean that everyone copying your signal and such will have those same levels of protection. Now I'm not saying you're selling a signal or allowing direct trade copies, but typically when people have a largely profitable account, there is also usually someone selling those trades via signals. Etc etc etc. You're ignoring the basic #1 rule of successful investing.

RISK MANAGEMENT is the #1 priority. Anyone who says Risk Management isn't important, is someone who is putting their entire investment capital at risk, and putting the investment capital of others at risk as well.

If you don't properly manage the risks, then it's absolutely irresponsible.

Risk Management is more important than generating a fast profit.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Mitglied seit Jan 05, 2016   1189 Posts
Nov 28, 2019 at 21:54
Baazex posted:
It depends on your trading strategy and market condition If you are sustaining without any loss it counts as well.

No, you're absolutely wrong. 100% Wrong.

You assume that since nothing bad has happened 'YET', that something bad wont happen in the future.

That's careless to think that way, when it comes to properly protecting your investment capital.

If you don't manage your risks, you aren't properly protecting your profits.

They could both be using the identical rules for entry, but the losses will be greater with someone who isn't properly managing their risk.

The primary difference between an successful investor with a profitable account and an unsuccessful investor with a blown account, is the successful investor properly manages their risk.


If it looks too good to be true, it's probably a scam! Let the buyer beware.
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