Hey guys, what are, usually, your ways to find the stop loss and take profit for your trades? I’m trying the ATR indicator right now but I’ve find that when we have divergences moments, the ATR indicator it’s not very accurate (let me know if I’m doing something wrong).
I’d like to know other different ways to do it correctly.
stop loss is scam
you need to defend your assets not protect them with a wall of cardboard
I like to consult the ATR as I take trend-following trades and do not want to get stopped out by normal volatility or a minor pull-back. I usually set my SL at (on a long) the low of the signal candle - I’m usually buying on the resumption of the uptrend after a series of candles with lower highs.
But I check that the SL distance from entry is at least 2 x ATR: if the distance is less than this I set it to 2ATR. I have heard of traders doing alright with a 3ATR SL distance.
So, I assume that for you, stop loss means that we are not doing the max amount of money? like a trap to stop our profits?
I mean, stop loss is a way of defending your assets, your balance. If you don’t use it, your whole balance can be in risk…
Hmm, I understand what you saying but how can you calculate the ATR on the chart? Basically the simple ATR indicator is outside of the chart… I already tried other types like Smoothed Moving Average but the lines are always in between the candles…
The ATR (14) window indicator shows a ‘points’ number alongside, which is different for every TF, starting small at the 1m and increasing as the TF moves up. When you open a trade you at least add the number to the price action S/L and T/P. Some traders widen this, and it is more risky to place a S/L less than it shows.
Example: my AUD/USD 1hr chart shows ATR at 0.00116 and my entry price shows 0.68297. Add or subtract that, e.g. (116+297) = 413 which is an average 41 pips price action for 1hr.
I haven’t tried it, but you could experiment lowering the (14) to (10) or below. That needs to be backtested before going live with it.
Hmmm. 
I’m not sure if this one’s a “correct” way, but this is usually how I do it. 
Since I’ve mostly been trading according to the trends, for my SL, I check the latest tops or bottoms and adjust the value from there. Like, if I’m in a long position, I would look for the most recent and relevant dips and typically set my SL just a bit above that. As for my TP, I draw a trend line and I set my TP around the area that I think would likely be reached according to price movement so far. I’m not sure if that made any sense!
Oh! 
I just remembered that I also used to follow the HLHB system, and I guess for some systems like this one, there are already prescribed SLs and TPs. For HLHB, it was prescribed to use a 50-pip trailing stop and a 200 pip TP. 
Its simple enough. Consult the ATR chart to get the current ATR value, multiply it by 2 for example and either subtract from a long entry price for the SL, or add to a short entry price.
Whether 2 x or 3 x is the better multiplier might be down to personal risk tolerance and preference: it might even be varied according to the market or type of market being traded.
Default ATR period is 14 candles.
nobody knows which way market will go
therefore to protect your asset something else should be used
I am right now experimenting with a strategy that i found in the net
check my other post
I think he means that most of traders losses are from being stopped out of trades which, if you wait long enough, will eventually come back to you. I have alot of sympathy for this and rarely use stops myself. However, you need to have broad enough shoulders to absorb the very occasional huge loss when the trade really runs away and doesn’t come back, so I don’t recommend this to newbies.
I base mine both entirely on structure personally. In a buy bought in deep discount my TP (at least a partial) will be at the next draw on liquidity as I see them above me. My SL would be below the previous swing low most likely. Vice versa for sells.
If you listen to others who tell you stoploss is not necessary and you buy into it, you are in for a difficult time.
What I do is to find a “Reasonable Reference Point”.
Reasonable is a skill, a skill in gauging where reasonable lies at. For myself, it is usually a swing high(if I am shorting), and swing low(if I am longing).
I used to watch Rayner Teo’s videos and I learned the ATR from there, however, I have stopped using the ATR for a long time because I have honed the “skill” to knowing what a reasonable amount of pip is, away from the “Reasonable Reference Point”.
So, here’s what I do,
1st - Find your Reasonable Reference Point for this setup.
2nd - You could either eyeball it(based on experience), a better choice for you now, would be to use 1X ATR(20) away from the “Reasonable Reference Point”.
After a good enough amount of time, trades taken, and experience(regardless of if you profited or not from the practice), you will know how much pip you should use, while referencing the “Reasonable Reference Point”.
And by then, it is entirely up to you, if you choose to use the ATR(20) or not.
If you would like to watch me talk more about stop loss, or, trailing stop loss in this case, go to YouTube and look for Duck Hunter Forex, I have a video on how to trail your stop loss like a pro.(PS : Can’t post link yet due to low post count).
Great Day Ahead, and alway ALWAYS use stop loss.
I use the multiples of ATR but trying to get better with using market structure like others.
Is it common to set your TP first and then based on R:R, figure out the stop? Or vice versa is more common?
I think the most common is the sl first and then you figure out the tp. But again, there’s no right or wrong in the market.
ATR goes crazy in Forex market, as it’s very liquid… during the day price is all the time having impulsive and corrective moves, so ATR Will always be doing the same (honestly useless)
For me the best way is to look the chart like a map…
Price is a boat sailing the map…
You are god…
Now think… where should I get on the boat??
Where should I get of the boat?
The more time you spend trading… the better you Will read the map…
Pure Price action and chart time baby… all you need
You serious? ahah I mean, it makes sense what you say but you have to think about the “storms” you will find during your trip in the boat… that’s why you have to protect yourself with the sl…
Sure my friend…
You get off the boat with profits or with a loss… but you get off. If you stay for too long… the storm Will sink you, sink you mentally… emotionally or economically.
A pro trader just looks at the map… and thinks… where are the Bulls? Where are the bears??
Those are the places you hop on and off… you should already know and asume the Risk. If you are right good… if you are wrong… Next time …
The more trading sessions you sail… the better map reader youll be
