How to modify the stop loss position

How do you modify the stop loss position?

Do you set a:

1. Tight stop loss at beginning (say 10 pips), then widen it as trend progresses (say 25 pips). Then tighten it again (say 10 pips) when you think trend may finish?

2. Wide stop loss at beginning, (say 25 pips), then widen further it as trend progresses (say 40 pips). Then tighten it again (say 10 pips), when you think trend may finish? That's hoping you don't get stopped out early and live long enough to get the opportunity to tighten the stop.

3. Constant small sized (say 10 pips), stop loss all the way to the end of the trade.

4. Constant medium sized (say 25 pips), stop loss all the way to the end of the trade.

5. Constant large (say 40 pips), sized stop loss all the way until the very end and tighten (say 10 pips), at the very end of a trend?. That's hoping you don't get stopped out early and live long enough to get the opportunity to tighten the stop.

Maybe it's because I've traded almost no stops in real (a while ago) and few in demo; I've certainly read on, and have thought a lot about where to use, them:
How can you tell where to move a stop until you have a studied reason to place the stop?

Otherwise your list would be a simpler
Stops,

1. no
2. very large
3. medium
4. small
5. reason-variable

Then it's merely one's personal tolerance level for getting a certain number of losses that go with smaller SL's.

Anyhow, I'm more likely to adjust TP, so that I can get used to taking more pips.

Every time I try and reduce my very large SL, I get ruined -- well, I get ruined anyway...
So, your implied experience in placing stops is interesting.

It does sound like you put a lot of work into moving stops; it must have a better effect than trailing stops do.

6. None of the above

My trading is based off of strict money management and trade management.

It would be too much detail to describe here but basically stops get moved as market moves which is determined by a lot of factors.

Hope this helps


-Mike

6. also. My stops are pretty standard fare, based on price action and equity management e.g. if short under a bullish candle of say 22pips and a first take profit of say 10pips from entry under the bullish candle; stops would be at say -25 until first take profit, then move to -10 making free trade to TP2. Less stress when TP1 makes you free. Works for me!

Here are some good responses to a similar question:

http://www.forexfactory.com/showthread.php?t=35767

At the end of the day it's down to your style of trading. Money management and the quality of the set up should be your first guides. If a trade doesn't take off in the right direction I normally close anyway, before any stop loss. I'm prepared to take lots of small losses. It's important to know when you're wrong. You can always re-enter at a better price.

I am not a big fan of predetermined stop losses. I always determine my SL on market conditions, not by a fixed pip amount. I put it behind a fib level, S/R levels, previous bar low/high or even a %of ATR. I let the market give me an idea of what my SL should be. Once it is in place, I leave it there. Move it to BE after it's gone my way and that's it. Keep it simple!