What is the safest (but most profitable) way to set a stop loss? - page 4

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ANTHONY ONOJETA #:
That is also important because I have observed most times when one chooses a sl using support and resistance zone market sometimes get there and reverses after hitting the sl. So, which ever way you want to use to choose your sl ensure you consider how much you are risking when that sl is reached
This is true as long as you don't consider how much volume you apply to your trade.

When applying your SL distance to a volume, or the other way around, you can control the risk on that trade, and keep your account protected.
 
Dominik Egert #:
This is true as long as you don't consider how much volume you apply to your trade.

When applying your SL distance to a volume, or the other way around, you can control the risk on that trade, and keep your account protected.

I finally programmed this SL to risk function, after leaving my hesitance at the door, and yes, it's a good mechanism as seen in a backtest. I was previously trying to rely on a time filter, but filtering out too many trading hours in the day ends up not being a good thing.

 

Never back test with a stop loss module, you'll get bias result. 


I never use a stop loss, back test my algo and make sure that my win% is high enough, but if I have to put in one it'd only exist as a contingency plan e.g. I want to save XY% of my equity. 

 
Interesting 
 
Frederic Metraux #: Isn't the SL calculated from risk?

No. Answered at #1

 
LJ #:

Never back test with a stop loss module, you'll get bias result. 


I never use a stop loss, back test my algo and make sure that my win% is high enough, but if I have to put in one it'd only exist as a contingency plan e.g. I want to save XY% of my equity. 

that depends if you have time to supervise the trades

No matter what you think, if you would have an automated trading system left unsupervised with no stop loss, it is not intelligent. Eventually something will go wrong and the account will be blown (if there is no drawdown control).

 

you can adjust your stop loss using daily range. each pair has their own daily range. it can be measured by pips or percentage. this is good for intraday. 

and IF your winrate above 55%. 1:1 Risk Reward Ratio is good, but if bellow 50% at least 1:2 Risk Reward Ratio.

 
put it behind the horizontal volume level
it can also be a previous global extremum
In general, short stops are evil
 
Red_Azot #:
In general, short stops are evil

I thought this too. but more so in automation. I think maybe a seasoned trader could be clever about short distance stops and large lot sizes if they really knew what they were doing, but short stops will get hit 9/10 times for a retail trader

 
Abdul Barrud Darovi #:

you can adjust your stop loss using daily range. each pair has their own daily range. it can be measured by pips or percentage. this is good for intraday. 

and IF your winrate above 55%. 1:1 Risk Reward Ratio is good, but if bellow 50% at least 1:2 Risk Reward Ratio.

Excellent tip. Instead of managing a multiplier for the ATR, when in hourly timeframe, using the ATR of daily timeframe works great! Thanks.
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