Stop Loss

There is no specific set up for your stop loss as it will be entirely differ or vary in your trading plan and in your target pips. we need indeed to know how to volatile the market we are trading before , we can set what will be our T/P and S/L/ and we always suggest that every trade will need to use this method as part of their risk management.

You are right. Stop loss is very important for controlling your risk. I think it is a must when building your trading plan.

I set my SL and TP position according to the placement of support resistance area! This method helps me a lot to avoid SL in my trading as well as get my TP so smoothly.

I use ATR to determine stop loss. Seems to work for me and takes into account volatility

Snorre posted:
I use ATR to determine stop loss. Seems to work for me and takes into account volatility

atr is one o the best way to get out ,

what i HATE about stop losses is that they tend to be market orders with almost every broker i've looked at. this means that sometimes you're stopped out not because the market has moved in any direction but because there's no liquidity (e.g. the bid-ask spread has exploded), which is usually THE WORST TIME to execute a trade! you'll save a crapload of pips if you just wait a few hours before you do anything.

right now, i'm sitting on an EURCHF position - not the most liquid pair around. i watched the spread jump to 20 pips during the sydney session even though the mid barely moved around that time. if i had a 20 pip stop loss, i would have been stopped out simply because of the time of day. the spread on my screen is 2.4 pips right now with the mid moving only slightly -- it creates the illusion that the market has suddenly moved 17.6 pips against me and then came back even though nothing really happened.

my algorithms remove stop losses and switch to bids and offers (or buy/sell limits depending on what your platform calls them) during illiquid times - a simple tweak that definitely saves pips.

I have two rules when it comes to using SL - one is to have a broker where the spreads to don't widen randomly and the second is to avoid trading during news events altogether, because in that case spreads do widen a lot, even if your broker is good.

AmDiab posted:
I set my SL and TP position according to the placement of support resistance area! This method helps me a lot to avoid SL in my trading as well as get my TP so smoothly.

What’s your opinion about intraday support/resistance level? Do you use both long-term and short-term time frames for drawing S/R levels?

The stop loss is one of the best tools of the big players of the interbank market, to transfer capital from retail traders to them. Or do you think that they can not move the price, breaking the stop loss levels, buy positions at a low price, and then break buy stop levels, to sell those positions, but at a more expensive price?
Come on ... wake up guys.

Snorre posted:
I use ATR to determine stop loss. Seems to work for me and takes into account volatility

Do you use default parameter or any particular sittings?

In my experience dynamic stoploss is always a better choice than static stoploss. I mean instead of using a fixed stoploss in each and every trade a strategy should decide the stoploss value individually in each and every trade.

Apart from that a hidden advanced stoploss value to close the trades early is also a better option.

leo23 posted:
In my experience dynamic stoploss is always a better choice than static stoploss. I mean instead of using a fixed stoploss in each and every trade a strategy should decide the stoploss value individually in each and every trade.

Apart from that a hidden advanced stoploss value to close the trades early is also a better option.

I think so, using a fixed stop loss is a problem! Because, there is no fixed rule of trading; traders need to set their SL based on the market context.

That is a good point. Picking a fixed SL is a totally arbitrary way to do it. Much better to let the market tell you

I would say the Stop Loss depends from the strategy, target and risk, traded market, trading plan, market conditions and could often vary :)

Buddah5698 posted:
That is a good point. Picking a fixed SL is a totally arbitrary way to do it. Much better to let the market tell you

Yes, using a fixed SL level is always risky! Because, we need to set our SL’s in the safe area! So, I always set my SL and TP positions according to the position of nearest support and resistance area.