Today we will look at 12 ways to set a stop loss for various forex strategies or cryptocurrencies of this site with examples and videos.
- The first important rule: always set a stop loss!
- The recommended stop is 0.5-1% (desirable for beginners) and 2-3% (average for most strategies).
Options for setting a stop loss order:
1) Beyond the trend line, channel (under the line, which the price has broken upwards when buying and above the line, when it breaks down).
Useful related links:
- Forex & Crypto Channels: Main types, How to build, How to trade and make a profit
- Trend line: what is it in Forex, what shows the trader, what is it for, how to build it correctly
2) For an important Fibonacci level / Fibonacci congestion zone
Useful links:
3) Beyond the extreme — under the last (closest to the price) minimum / maximum in the direction of travel. It is also possible to install under the Fractal.
Useful links:
4) For indicators (moving averages, PSAR, etc.)
Example:
Example:
Useful links:
- Trailing stop 7 in 1 — get it for free (in telegram channel) ➜
- Trailing stop universal: 7 types of order tracking + script for placing orders on the news (description + video on installation and use) ! (instruction and video in Russian, use the google translator)
5) Fixed number (tested on history, for example), just the average retracement range for this pair
For example, for EURUSD: 20-30 points, for GBPUSD — 50 points.
6) For an important level / extreme (high or low)
7) For daily or weekly high / low
Often used in long-term strategies, for example in:
- Daily
- Weekly
- or in breakouts
8) By pivot levels (for him)
Useful links:
9) According to graphic patterns
- WW — behind point 5 and line 1-3-5,
- H&S (Head and Shoulders) — behind the neck line + right shoulder,
- Triangle — last high / low, etc.).
Example 1 — Head and Shoulders:
Example 2 — Pennant:
Useful information on the topic:
10) For the retest and lights out candle (almost like point 3). Often this is a PIN-BAR.
Useful links:
11) By Stop trade (positive stop). The stop loss is moved in the positive zone as the price moves in your direction: first to breakeven, then n plus under important extremes and levels. Trailing stop is often used.
Useful links:
12) Putting a stop loss at breakeven.
You should also always remember that:
Video — 12 ways to set a stop loss:
If you have any comments, ways, write in the comments!
