Well, technically you should have a volatility measure and use that to set the stop on a daily basis as it changes.
I was thinking it would be too difficult, but I have to set the auto-stops each day anyway on each different instrument. The simplicity of a fixed stop is nice, but I will at least consider the % of ATR idea.
Same as my algorithm . On the 1 minute chart i have a minimum 40 ticks SL on NQ, but the stop can be larger depending on the low of the candle that triggered the entry. Same for 5 minute charts but there the minimum SL is 60 ticks for me. However Syswizard is right, a stop based on volatility is better. I am also working on that.
Why not? You are just teasing/maybe baiting him not encouraging him. If you know something he needs to know tell him plainly what it is. Give the man some real executable practical stuff, if you know some. It ain’t gonna hurt YOU is it? Don’t be so secretive. Spill the beans! Why come on ET and tell traders “it is out there”? Show them what it is, where it is, and how it works. Wishing good luck never helped any trader.
Just use a PA stop. If the instrument you are trading is volatile that day your stoploss by nature will be wider. If not it will be smaller.
That's a mighty tight stop on the ES in this environment. Your entries truly are great if you can use such tight stops now. Note that the comment was a reply to Hilmi, not sstheo. As such, it shouldn't be in this journal probably. I think I got the gist of it, though.
If this is established based on MAE analysis of real trades, then this is a good and correct idea. But, if this arose out of your desires and intellectual inferences, then this is a bad idea that will destroy the established style of trading. Golden principle: while it works - don't change anything!
If you enjoy having your inner trader salivate; 1-5 with the exception of 4 can be simplified into 1 parallelogram based envelope that encapsulates price with 3pt channels. When combined with volume, one can ‘know that they know’ what to anticipate with PA on the HRE.
There is a lotta drool around here today.... Simplification is a great goal for all traders, including yours truly. I don't fully comprehend; post a screen shot here or privately to me? Thanks.