Most traders see a stop loss simply as a tool to limit losses. For a momentum strategy, however, its role is much more important.
Momentum trading is based on a simple idea: if the market starts a strong move, the price should continue moving in the same direction.
A momentum trade should quickly confirm that the original idea was correct. If, after entry, the market starts to stall, move sideways, or reverse, it usually means the expected momentum is not there.
That is why there is little sense in hoping, holding, or trying to recover the position later.
If the momentum fails to continue, the trade idea was wrong. And when that happens, the position should be closed with a predefined and controlled loss.
This approach preserves capital for the next opportunity when the market truly begins a strong directional move.
In Dual Striker, every trade is opened with a predefined risk level, and the stop loss is an essential part of the strategy.
A stop loss is not only about protecting the account.
It is also about recognizing a mistake quickly and moving on to the next opportunity.
Dual Striker EA: https://www.mql5.com/en/market/product/185151
Live Signal: https://www.mql5.com/en/signals/2385210
