I want to say at this point that there is one indicator that I live by. It is the ATR. You cannot set a stop without it in my opinion. If the trader set stops based on some round number that sounds good they risk too many stops or stops that are too wide and cause losses to be too large. Imho ATR based stops as a percentage of daily moves are the only correct way.
I was reading a thread this morning where the trader had ten pip targets with one hundred pip stops. This guy was trading OPM. A simple ATR study would probably show that once the market moved some percentage of ATR against his position (perhaps 30-40%) he should close. With a hundred pip ATR this trader might save himself some serious losses. Personally I would never trade a method with a R/R lower than 2-1 but some people are winners with R/R <1. This trader however has to win over 90% just to beat the spread.
I was reading a thread this morning where the trader had ten pip targets with one hundred pip stops. This guy was trading OPM. A simple ATR study would probably show that once the market moved some percentage of ATR against his position (perhaps 30-40%) he should close. With a hundred pip ATR this trader might save himself some serious losses. Personally I would never trade a method with a R/R lower than 2-1 but some people are winners with R/R <1. This trader however has to win over 90% just to beat the spread.
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