What is the best strategy for stop loss?

[Alsaedi Hjaj M]

Hello guys

What is the best strategy for stop loss?

thank you

[Gtrade]

There's a guy here on mql5 who has an invincible strategy for stop loss, his name is Chuck Norris...he never loses.

[Enrique Dangeroux]

Chuck Norris does not need a stop loss, Chuck decides what price it is.

Seriously though, Like usual on these type of "what is the best", there is no answer. Define "best". What is the best car?

[Gtrade]

In general the best stop loss is when you put it near where, depending on your strategy, the price cannot (with most probability) go over, otherwise you would close the position too soon.

[mntiwana]

And it can be different on different strategies and on different TFs,not the only single and perfect formula

[Taiwo Okunbanjo]

Alsaedi Hjaj M:

Hello guys

What is the best strategy for stop loss?

thank you

There is no best strategy but there is an effective strategy provided you can control your emotion and be satisfied with this strategy; the effective strategy is using the current market volatility to pick stop-losses or trailing stops!!

[lippmaje]

William Roeder:

1. The SL and TP are the exit.

   You buy at the Ask and sell at the Bid. So for buy orders you pay the spread on open. For sell orders you pay the spread on close.

   1. Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid reaches it. Not the Ask. SL=Bid-n*pips, TP=Bid+m*pips
      
   2. Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask reaches it. To trigger at a specific Bid price, add the average spread.
                MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25
   3. The charts show Bid prices only. Turn on the Ask line to see how big the spread is (Tools → Options (Control-O) → charts → Show ask line.)

2. Never risk more than a small percentage of your account, certainly less than 2% per trade, 6% total.
   1. In code (MT4): Risk depends on your initial stop loss, lot size, and the value of the pair. It does not depend on margin and leverage.
      1. You place the stop where it needs to be - where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.
      2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
      3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
                   MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum 2017.10.10
                   Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
                   Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19
      4. You must normalize lots properly and check against min and max.
      5. You must also check FreeMargin to avoid stop out

      Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

   2. Use a GUI/Trade Assistant EA like mine (for MT 4): 'Money Manager Graphic Tool' indicator by 'takycard' - Risk Management - Articles, Library comments - MQL5 programming forum - Page 6 #55

https://www.mql5.com/en/forum/321343#comment_13052588

[Yossarian Escobedo]

Alsaedi Hjaj M:

Hello guys

What is the best strategy for stop loss?

thank you

Volatility-based stops based on ATR are the most commonly used stop strategies used by the institutions. 

And even MORE IMPORTANT is your position sizing. 

If your position sizing is wrong, then NO STRATEGY will work (long term). 

Hope this helps and best of luck on your journey.