Hi guys,
How do you set up a stop loss for trading the forex? And could anyone recommend a backtesting software.
You can place your stop order numerous ways ways but that really depends on the broker your using. I would just look at the help file for your broker. I use Oanda and I can place a STOP order at the same time I place the order to buy or sell. I can also right click on the chart to change the STOP order. I use Metatrader for my backtesting. Good Luck!
If you talk about the theory behind stoploss identification - thats your duty. Upon your risk, reward ratio.
Your stoploss is what you can afford to lose in that particular trade, not more.
Check your strategy, and your profit objective, that will give you a clue where to setup stoploss.
Metatrader indeed is best charting software I seen.
Stop loss is simple tool in operate but hard to do at every trade, maybe its just set at order any amount of pips but iin fact so many trader not do like this . Among of them still assume the market will move as their expected. so no want to set stop loss
I disagree with the majority and agree with the minority that a stop loss is sued to close a trade for a loss (I know a few here at BP have written about it). Makes perfect sense to me.
I guess the clue is in the name…
You are asking how to go about using stop loss?? Would suggest you check up on baby pips school for the relevant info right away…
I think setting a stop loss has to do also with which broker you are using as some of them have restrictions on how wide a sl can be
You do realise this is a 9 year old thread?
LOL, lazarus threads are a great fun to read up on…wonder how the OP did sans the SL…
9 years or 90 years, stop loss has the same importance. We can discuss this issue over and over again because this is something that had greatly changed my trading results once I started using proper stop loss in all of my trades.
True 'Dat…I guess the analogy to use here is like speeding up to sixty miles and over, taking sharp curves without brakes…it makes sense to use SL and given what happened with the SFranc, it is one way to protect your account from sudden unexpected freefall…
Hi, chill out, I was only smiling at how seemingly dead threads get resurrected on here 
Out if interest, what were you using prior to ‘proper stop loss’?
Did you change anything else in your trading at this time that may have caused this improvement?
Does your myfxbook verify this, it might be useful for others to see actual positive results as a means of encouragement.
I always use a Stop Loss. I´ve been doing it for the last 7 years trading and it is one of the most important aspects of my trading.
I would recommend Metatrader to backtest.
good luck!
What platform are you using? I am currently using mt4 with my broker and there are multiple ways I can place a stop loss. Just to add to this I always use a stop loss. If you are suing the mt4 platform then you can place a stop loss by selecting a price in the stop loss box when oepning an order, or if you right click on your open order you can select to modify it and add a stop loss. For backtesting I use the mt4 also. It is a simple platform with many capabilities and functionalities.
True, MT 4 sure makes for some easy trading…compared to the other variants…
Personally, I don’t use Stop Loss anymore. It’s a way to lose money if you have small funding. Stop loss is suitable for big players who have millions of dollars in their account. They can put wider stop loss that can’t easily hit by market ups and downs. Their trades can breath and withstand market’s unpredictability.
In my case, I use my defined algo to manage my losses and turn into winners. This makes me consistently profitable then. I don’t worry if the market direction turns against my trade because there’s an algo that could handle efficiently 100% of the time as long as the market moves.
What is this Algorithm something you coded?
I never use SL, instead I put averages up/down. I am 99% sure that the TPs an SLs are visible to brokers. It happened wayyyy to many times that my TP wasn’t filed by just 1-2 pips … for the same reason I suspect they can see orders and hunt them (Stop hunts)
I thought the same at one point, even on a practice account, so I investigated and the difference I was seeing was the spread, and my graph was showing the other end of the spread to what I needed, but ofcourse when you hit a stop loss, it looks to be premature for the same reason.
For me there are a couple of times that my reading of the chart etc. has been right, my take on what is going to happen pans out, but before it does, I get stopped out. So next time I increase my stop, and you gues ed it, I’m wrong I loose bigger than I should have. I think sizing the stop loss is a definite art and one I have yet to master.