Hi traders,members and friends
any trading position included :
entry level
exit level
stop-loss level
today we will make a spot light on " stop-loss level "
when stop-loss was hit , there is famous traders funny comments like "
" there is some one move the price against my positions ,i predict the
right trend but price hit my stop-loss and continue"
another trader was comment " no sir it is the broker which open positions against
ur positions " lol
and so on .. we heard a real funny comments when stop-loss hit ,
but i had learned think like a scintest , i'm already used optimization
technique in generating trading signal and exit, so that why i'm not use it
for determine best stop-loss level !
there is a lot of indicators or methods can but used to determine stop-loss :
- previous highs and previous lows " peak and trough " : its widely used method in technical analysis
- stop-loss calculated by a percentage from entry price .
- stop-loss by points : most trader do that where they use fixed stop-loss by points for any
position and for any Forex pair - of course it's not right "
- stop-loss calculated by ATR indicator: it's not my discovery , but i read about it in our
community articles , and i found that calculate stop-loss by using ATR
indicator is very useful with on condition which optimize the indicator
we will use ATR as following :
stop-loss for long entry = daily open - atr(14)
stop-loss for short entry = daily open + atr(14)
of course (14) for ATR is consider " default " value , it may give us
good result sometimes , bad results other times , we will discover other ATR values through searching and
testing and choose the best answers " optimization "
to be continue .
any trading position included :
entry level
exit level
stop-loss level
today we will make a spot light on " stop-loss level "
when stop-loss was hit , there is famous traders funny comments like "
" there is some one move the price against my positions ,i predict the
right trend but price hit my stop-loss and continue"
another trader was comment " no sir it is the broker which open positions against
ur positions " lol
and so on .. we heard a real funny comments when stop-loss hit ,
but i had learned think like a scintest , i'm already used optimization
technique in generating trading signal and exit, so that why i'm not use it
for determine best stop-loss level !
there is a lot of indicators or methods can but used to determine stop-loss :
- previous highs and previous lows " peak and trough " : its widely used method in technical analysis
- stop-loss calculated by a percentage from entry price .
- stop-loss by points : most trader do that where they use fixed stop-loss by points for any
position and for any Forex pair - of course it's not right "
- stop-loss calculated by ATR indicator: it's not my discovery , but i read about it in our
community articles , and i found that calculate stop-loss by using ATR
indicator is very useful with on condition which optimize the indicator
we will use ATR as following :
stop-loss for long entry = daily open - atr(14)
stop-loss for short entry = daily open + atr(14)
of course (14) for ATR is consider " default " value , it may give us
good result sometimes , bad results other times , we will discover other ATR values through searching and
testing and choose the best answers " optimization "
to be continue .
