Stop Level for StopLoss

Hello,

Which one of the following statements is correct regarding the calculation of stop loss?

  1. Stop Loss should be a distance from the Order Open Price/Order Entry Price by Stop Level.

Or

  1. Stop Loss should be a distance from the Bid/Ask Price by Stop Level?

Or

  1. Stop Loss should be a distance from the Bid/Ask price as well as the Order Open Price?

Thank you.

I might be missing something but aren’t they all true?

This must arise from a practical problem in the course of your trading. What problem has occurred?

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I am getting Error : 130

Main reason for 130, is Stop Level

It seems this message means the stop-loss is set too close to the current market price.

Means my second statement is true?

Your profit and loss are calculated from the order entry price. And don’t forget to include any commissions in your calculations.
So you would calculate your stop loss position based on the order value.
If you are getting error related to stop being too close to market price then you need to look into what is the minimum stop loss distance.

The stop loss level is determined by the terms and rules of your trading strategy. And you need to wait for such conditions for the transaction that the stop loss level is less than the take profit level. For some it is 1:2, for others it is 1:3. Thus, even with a certain number of losing trades over a certain period of trading, trading will be profitable.

I feel like the statement is pretty vague. :open_mouth: The distance can be to tight which will get you stopped out easily. Or too wide, so there’s the risk of incurring more losses. :open_mouth: Setting your stop loss can also depend on different factors like market volatility, support and resistance, risk percentage etc. :open_mouth:

I wonder if this is some sort of test or real question. :thinking:

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I can easily understand why you’d wonder, but all the other threads he’s started (here and in other places) suggest, sadly, that it’s real.

The Babypips school would help far more, but everyone traverses their own chosen learning curve at their own speed and sometimes even people who have been here for years, if they’re still not trading profitably, will try to make an HFT EA work, in pursuit of easy money rather than education. :frowning_face:

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I’ve personally never tried those, and I hope I don’t get to the point you mentioned. :sweat_smile:

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