Question about swing candles and stoploss calculations

New comment
 
Hello everyone, I am using 1 swing candle to calculate my stoploss, sometimes my logic gives me a very small stop loss that is smaller than the spread it self. If I go with this stop loss, I would be stopped out immediately. Any idea what should I do in this case? Thanks!
 
Scavyn Inc:  Hello everyone, I am using 1 swing candle to calculate my stoploss, sometimes my logic gives me a very small stop loss that is smaller than the spread it self. If I go with this stop loss, I would be stopped out immediately. Any idea what should I do in this case? Thanks!

Options:

  • Not trade (because obviously the spread is higher than the stop).
  • Widen the stop, so that it is at least a factor of of the average true range (ATR).
  • Other options (e.g. fractals, depends on the strategy rules).
 
Fernando Carreiro #:

Options:

  • Not trade (because obviously the spread is higher than the stop).
  • Widen the stop, so that it is at least a factor of of the average true range (ATR).

Thanks a lot for your reply Fernando. Would it also make sense to widen the stoploss by looking back one candle further? for example take index 2 when determining the stoploss?

 
Scavyn Inc #: Thanks a lot for your reply Fernando. Would it also make sense to widen the stoploss by looking back one candle further? for example take index 2 when determining the stoploss?

I edited my post and added ...

Other options (e.g. fractals, depends on the strategy rules).
New comment