What is the best stoploss in pips for time and currencies | Forex Factory

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What is the best stoploss in pips for time and currencies

  • #1
  • First Post: Apr 17, 2010 5:09pm Apr 17, 2010 5:09pm
how many pips do people find reasonable for different time scales
and different currencies.
  • #2
  • Apr 17, 2010 5:15pm Apr 17, 2010 5:15pm
i ve been using 266 pips a stoploss but

would like to have a further tightening to speed up profits

obviously 100 pips stoploss i would have a bigger margin to play with than 266 pips.

but what can i get away with ???

i .e gbp jyp day trade 150 pip???

5 mins 60 pips????

just wondering ?

? oh and yes i know if your an english teacher one ? is an enough but i like pressing it lol
  • #3
  • Apr 17, 2010 5:36pm Apr 17, 2010 5:36pm
depends on the time frame you trade as well as the system or method you are using. Market conditions play a role in how big a stop should be for a trade.
  • #4
  • Apr 17, 2010 7:10pm Apr 17, 2010 7:10pm
An incredibly vague question. People can base them on the average range of currencies, make up a number, pips to next support/resistance, etc etc etc.

There is no right answer to these type of questions.
  • #5
  • Apr 17, 2010 8:45pm Apr 17, 2010 8:45pm
Quoting magnumfreak
depends on the time frame you trade as well as the system or method you are using. Market conditions play a role in how big a stop should be for a trade.
I was taught to find the daily ATR and use a set measure of that.
  • #6
  • Apr 17, 2010 9:33pm Apr 17, 2010 9:33pm
Yeah, and it depends entirely on your trading approach, too. If you expect two-three candles from your signal that's different from expecting five-seven candles.

A 266-pip stoploss is fine for Monthly signals, but if you use that for Daily (or faster) signals you're probably entering too early or too late.

Rob
  • #7
  • May 16, 2010 3:31am May 16, 2010 3:31am
hey thanks for your replys guys

i do like my stop loss opf 266 seems to keep me safe and in a trade longer

but will do more analysis on this
  • #8
  • May 16, 2010 4:01am May 16, 2010 4:01am
Research.
  • #9
  • May 16, 2010 4:27am May 16, 2010 4:27am
Quoting tdion
Research.
what forex company you opening ?
  • #10
  • May 16, 2010 4:32am May 16, 2010 4:32am
No products or services for the first year.

Monday morning I'll be putting 40K into a live account to trade the EA I've been working on. 47,000 pips over 18 years of backtests is what I'm going off of.

After a year, I'll have a track record plus the simulations. At that point, I'll probably market the software to a bank, or run a fund (if things go well)
  • #11
  • May 16, 2010 5:03am May 16, 2010 5:03am
Quoting tdion
No products or services for the first year.

Monday morning I'll be putting 40K into a live account to trade the EA I've been working on. 47,000 pips over 18 years of backtests is what I'm going off of.

After a year, I'll have a track record plus the simulations. At that point, I'll probably market the software to a bank, or run a fund (if things go well)
Good luck. Tell us how it goes.

Stop losses: on intra-day basis, I always put the SL above/below daily high/low if it doesn't exceed 40-60 pips. Needless to say, I pass away many setups but its far too easy getting stopped out on the I.D noise.
Measure twice, cut once
  • #12
  • May 16, 2010 5:07am May 16, 2010 5:07am
Quoting Igrok
The best stop is the one placed outside of the current intraday trading range.
I agree with this man.
  • #13
  • May 16, 2010 6:17am May 16, 2010 6:17am
Hi,
The way i see it is there are three ways of placing a stop loss
1) "A Margin SL" this is to not place a SL at all, but to only deposit a small amount of your total trading capital in your account at any one time. Then hold a position until you no longer like the look of it or get a MC.
2) "A Static Arbitrary SL" this is to always put a hard fixed SL at a given number of pips for every trade (say 50 pips for example), regardless of profit target, this makes position sizing calculations easy.
3)"A Logical SL" placing a SL above/below support/resistance/fibs, this distance will vary form trade to trade, moving it further/closer as the trade develops and the situation changes with time.

I use No.3

also check out:
http://www.forexfactory.com/showthread.php?t=236635
  • #14
  • May 16, 2010 7:00am May 16, 2010 7:00am
Quoting swano
how many pips do people find reasonable for different time scales
and different currencies.
If you are daytrading, u may want to consider this ...
use 14 day ATR ...

I assume you have a 1:2 risk reward ... and u aim to grab 50% of the daily range.

If the 14-day ATR is 200 (like GU) .. u aim to get 100 pips .. so SL is 50 pip ...

Find a method that can live with 50 pips SL (daytrading). If you use Daily pivot + psych level .. this can be done.
  • #15
  • May 16, 2010 8:17am May 16, 2010 8:17am
best SL is so damn relative to the trade you're entering..

where u think your decision to enter will be proved wrong is what u need to enter

which can also rely on your general outlook for the day/week whatever...risk size, intent to scale in etc
  • #16
  • May 16, 2010 8:19am May 16, 2010 8:19am
I find that a "set" SL is dangerous in varying market conditions; so I personally use ATR(14) Value * 3 on the 5 minute charts. I also trade the pairs with lowest spreads on Oanda to maximize effect.

If the ATR Value * 3 Stop Loss is higher than what I'm comfortable loosing, then I avoid that pair till the range has calmed down.

At the same time, a "set" TP can be equally dangerous. I monitor the pairs movements closely and if I don't like what I'm seeing on the charts, I may abandon the trade with close to or a small fraction of the 45 Point TP I normally shoot for.
Capital Preservation is key to long term wealth accumulation
  • #17
  • May 16, 2010 8:35am May 16, 2010 8:35am
Quoting tdion
Research.
Absolutely 100% correct !

It never ceases to amaze me how reluctant people are to actually do some work for themselves, but thankfully they dont.
  • #18
  • Edited 8:55am May 16, 2010 8:49am | Edited 8:55am
Who are we to assume he is not researching, and a forum post is not a mere addition to this hazy tip of 'research'.
  • #19
  • May 26, 2010 3:51pm May 26, 2010 3:51pm
Quoting Sim
Who are we to assume he is not researching, and a forum post is not a mere addition to this hazy tip of 'research'.
i say more heads are better than one

but as it goes it is cheeky of me to ask when you guys have struggled and put the hard effort into it yourselves.

but I do grow wiser by the day
and so do others that read this thread

so i do value all your comments and appreciate all your posts
  • #20
  • May 26, 2010 3:59pm May 26, 2010 3:59pm
there is much reseaech i have under gone and will inform others on the research that i have been doing.

I am a person that loves thinking out the box
so Im alway trying to discover paths that are not always clear.

once the world didnt not believe in black swans they thought they were another bird, only after research they discovered it was a swan in the waiting of adult hood

as is the life of an investor to i believe
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