Hey, I’m not so much a fan of stop loss myself and there have been instances where it has accidentally triggered a sale due to some random price fluctuations. Not at all a good experience, if you ask me.
Danny, so you don’t see any advantage of using it at all?
It’s not that I don’t see it. Obviously it is the most suggested money management strategy everywhere and I did try it sometimes. It just doesn’t work for me especially with big trades. I’m okay to risk less with smaller trade.
I have used enough demos to answer your question. At some platforms they were completely different from what a live account looks like. With some other brokers, the demos were almost similar to live accounts. Platforms like IG, Hotforex, Oanda, Fxview, gave me a better experience in terms of better simulation and more live-like trading conditions. .
I personally don’t like automated trailing stops. I mean how can we determine the flow of the market. You never know when the price makes a sharp move after hitting your trailing stop and keeps moving in the opposite direction.
Depends on the trade you are entering. There is no particular stop loss that I can mention. I calculate it during every trade I execute. I keep changing my strategies and so, I need to make new calculations every time.
If you are not comfortable using stops, I don’t think you should be using them. There are many other ways that can help you in making profits. Keep researching and looking for options that work for you.
It is you who is trading and so, it should only be you who should make the decision. Just make sure that you demo trade everything before risking your money.
If you are aiming at a good risk management along with a decent trade management, you should consider the trailing stop loss since its placement is almost the same as a normal stop loss.
I agree! Trailing stop loss can save the profitability of a trade and they work well for me too.
I was recently using the moving average indicator with it but that did not work for me. Is there any other indicator or technique I can use for improving my sl?
See there are so many technical indicators that you can use for placing the stop loss. Try the average true range indicator as it will not limit your profits as such. Keep experimenting and backtest your strategies for a better view. Hope you’re using good brokers for this? It does make some difference to your trades if you trade on a decent platform.
I only use SL sometimes. Should I use it more often? I actually feel that it’s better to not use it than position it wrong.
They seem pretty much the same to me and anyway work well if you use them smartly.
Interesting topic!!!
My particular strategy calls for a 2% Risk with a TSL, I use 1.5x the ATR for this.
If my entry isn’t right by the time it’s moved against me by 1.5x ATR then I was wrong lets face it.
I will backtest this over time however and see if tightening or loosening it would improve things when I have a greater history of trades to fall back on.
That totally depends on you and how you trade. It does work for saving you from bigger losses so I don’t see any problem with using it more often.
@blocksxray I am actually keen on understanding the right values for stop loss, I know that it varies from trader to trader but still, some standard numbers might help a lot of traders.
I think most people get confused about the kind of sl they should use. I generally go with fixed stops because they are maintenance free and I just set them up and my job’s done.
Fixed stops are okay but they don’t adjust to any favourable conditions in the market, so that’s a bit of a loss of profit.
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Yes but it also saves me the risk and additional stress that comes with it, so I say it’s worth it. Which sl do you prefer?