" BEST " method to use for Stop Placement ?

Discussion in 'Risk Management' started by md2324, Feb 21, 2017.

  1. Newc2

    Newc2

    i just enter on the next breakout bar. Once again the stop is placed below that bar. Yes I sometimes get chopped a few times but if the breakout is good then the rewards far outweigh the small losses.
     
    #21     Feb 23, 2017
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  2. irniger

    irniger

    #3, but not a stoploss with a figure, which in a gap situation might be easily reached with the price bouncing back and loosing all or some of the accumulated the profits.

    Instead of a certain figure I use an Exit EA (in Metatrader) based on MA of an adaptive RSI and an ATR. This produces a belated exit but in many cases safes the profits. At the same time this indicator is the signal (among other conditions) to enter a new trade in the counter direction.
     
    #22     Feb 26, 2017
  3. I trade breakouts the same way including stop placement. I will sometimes drop down to a lower timeframe to find the optimum point to enter the failed breakout. That reduces my risk considerably.
     
    #23     Feb 27, 2017
    Newc2 likes this.
  4. Newc2

    Newc2

    To understand where to place stops one needs to understand structure of the market. Then you can get a stop in nice and tight with low risk of being hit, and at the same time giving maximum reward to risk.
     
    #24     Mar 2, 2017
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  5. %%
    Great question. It may have started, in the Smoot- HawleyTariff[tax]-insane leverage bear market of 1929. NOT a prediction;200 period moving average can help.
     
    #25     Mar 3, 2017