I think MAE can help you decide where to put a stop loss without affecting profitability. any stop above 1.5ATR is sufficient to avoid getting stopped by noise. I like to sleep well.For me not to use stops I'd have to risk less than 0.5%
A range forming on the trading TF â is simply a pull back â or potential turn â on a higher TF So to help define the chop/ range you may currently be in â take what you know â and use it as a comparison Yesterdayâs H/L A previous bar / or series of bars â already closed Previous swings â minor and/or major Time eta; what's that ditty about NRB's/ WRB's leading to each other - they always do doncha know ==================================== Trading is always much ado about the relativesâ¦. Well except, of course, when using stops â thatâs an absolute but hey donât let me sway yer thinking on stops â the mkt will more than take care of that one â in due time RN
If a person day trades, he will use stops or he will be looking for other employment. There's only two kinds of people in the world who refuse to use stops: The lucky. Those who used to trade.
You need to include a third category of people in the world who day trade without stops: Those who do not use stops to take a loss. If you are day trading, you are in front of your screens, right? I mean, what are you doing while you are in a trade? Sitting and waiting for your stop loss to get hit? LOL If you are day trading and as a rule you use a stop loss to exit a bad trade, you really need to improve. Unless trading is just a hobby for you.
You don't use stops to "take a loss". You use stops to protect your account. When you get into a trade, you either watch it go your way or you take your stop loss.
You don't use stops to "take a loss" but you "take your stop loss." Hmm. One or both of us has had too much eggnog.
I think he meant no fixed stop loss. As in watches the market when he feels hes wrong, he closes the position, instead of letting the market close it for him.
Wider stops are fine if you are going for either wider profits, or have a very high win %. Just having a wide stop for no reason leaders to wider draw downs.