I've been paper trading a few months now, and I feel that one thing I need to improve is setting more effective stop loss and trailing stops. I've been using Mudd Buddha's Simple Forex system, but recently I switched over to the Sidus system. Both of these systems I've used mostly on 1 hour charts.
The problem I have, is that frequently my stop loss will be hit when the signals of the system I'm using are still good. I'll usually jump back in hoping my stop loss will not be hit a second time. Sometimes it does, and other times I'll watch as the price bounces back from my stop loss and moves the way I thought it would.
So basically I'm asking what should I do to set more effective stop loss and trailing stops? Usually when trading the hourly charts I'll set it somewhere between 25-30 pips, and occasionally I'll set a 20pip trailing stop on a trade.
How many pips are optimal when trading the hourly charts? And what about the 4 hour and daily charts?
The problem I have, is that frequently my stop loss will be hit when the signals of the system I'm using are still good. I'll usually jump back in hoping my stop loss will not be hit a second time. Sometimes it does, and other times I'll watch as the price bounces back from my stop loss and moves the way I thought it would.
So basically I'm asking what should I do to set more effective stop loss and trailing stops? Usually when trading the hourly charts I'll set it somewhere between 25-30 pips, and occasionally I'll set a 20pip trailing stop on a trade.
How many pips are optimal when trading the hourly charts? And what about the 4 hour and daily charts?