Hi,
I lose many trades cause stop loss is wrong.
I put stop loss at a previous low.
Do I have to add the difference between ask and bid price?
What is the relation of candles price and bid or ask price?
On most charts, the display shows the bid price. Its possible that your platform allows you to change this setting to the ask price or maybe even the mid-price.
Yes, allow for the spread when setting an order.
Of course, if the spread makes the difference between making a winning strategy or a losing strategy, maybe your time-frame is too short.
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That might be because you used shorter time frame, try expanding to 5 mins or 1 hour and see whether there is a similar pattern or not.
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Yes you need to account for spread and also a lot of people put their stop loss below lows or above highs and that is where the market is sweeping for liquidity. I would give at least 5 pips from that low too
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When you trade on the 1-3min chart, you need to keep in mind that you are looking at a chart that has little to no effect to real moves of the market. Therefore if you assume that taking a trade by only looking at the 1min chart will get you far you are overexposing yourself to Higher timeframes Micro manipulations way Too easily, which can stop you out sooner that you thought, even if the trade ends up going in your direction.
Another issue with 1-3min chart trading is Spreads, they hold a heavier weight on tiny timeframes, especially when it start fluctuating due to volatility. That could also be a reason why keep getting stopped out. A friend of mine trades the 3 min chart and had the same problem, we realised later that he kept getting stopped out because he couldn’t see the Bid/Ask spread. He was only seeing the Avg. price line. So maybe adjusting that can help you Aswell.
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A condition of bid and ask price broker. This is why some pips need to be buffered when stop loss is given. If you keep the buffer, the chances of a stop-loss hit are less.
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