Numeric SL vs. indicator exit signal

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Hi

I would like to hear your opinions regarding the use of stop loss on manual trading systems.

Do you prefer to set a numeric value for the stop loss? Do you prefer using only the exit signal given by your trading system?

What do you think about protecting yourself from losses by setting a SL at the open price (after you have a floating profit of x pips)? The answer to this question is very important to me. If I set this SL at the 0 level, there are many times when the prices hit my SL closing my position with 0 pips, but after that, the prices continue to go in the good direction. So, I don't lose much, but I can't win much either. Are you using this type of protective SL?

Please tell me what do you think.

Best Regards.

 

Hi,

Concerning exits I advise to read this http://www.traderclub.com/discus/messages/107/124.html

In this bulletin you can find all answers on your questions.

Igor

 

Thank you Igorad.

Please tell me what do you think about using a protective SL at the entry price (for not losing anything once you have 10-20 pips floating profit).

Bye.

 

hello ,

For me combined.

 

In your system you must use BreakEven Stop. It will increase your win/loss ratio considerably and in some cases will keep from whipsaws.

 

On D1 timeframe i suggest setting numeric SL at 100 pips, for Gbp pairs it could be even 110 pips, and that's on entry

Closing on exit signal.

Bigger risk, bigger gains

 
My EA uses an indicator-based dynamic exit as a trailing TP of sorts, and a fixed "fail-safe" stop of 50 pips.
 

Hi everyone,

In my experience developing algorithmic systems, I believe a fixed SL is mandatory as a "safety net" against black swan events, but the real magic happens with dynamic exits.

Regarding the Breakeven (BE) strategy: Setting it at exactly +0 often leads to getting stopped out by "market noise" before the real move starts. To fix this, I prefer two approaches:

  1. Buffer Zone: Instead of +0, move the SL to +2 or +3 pips to cover commissions/spread, but only after the price has moved significantly (e.g., 2x the spread).

  2. ATR-based Trailing: Instead of a hard move to BE, use a trailing stop based on ATR (Average True Range). This allows the trade "room to breathe" based on current market volatility.

If you find yourself getting stopped out at BE only to see the price hit your TP later, your BE trigger is likely too tight for the timeframe you are trading.

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