12 Ways to Set a Stop Loss for Any Strategy

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).

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Useful related links:

2) For an important Fibonacci level / Fibonacci congestion zone

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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.

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Useful links:

4) For indicators (moving averages, PSAR, etc.)

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Example:

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Example:

Useful links:

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.

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6) For an important level / extreme (high or low)

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7) For daily or weekly high / low

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Often used in long-term strategies, for example in:

  • Daily
  • Weekly
  • or in breakouts

8) By pivot levels (for him)

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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:

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Example 2 — Pennant:

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Useful information on the topic:

10) For the retest and lights out candle (almost like point 3). Often this is a PIN-BAR.

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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.

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Metatrader-MT4-MT5-Auto-Trailing-Stop-Loss-EA-2

Useful links:

12) Putting a stop loss at breakeven.

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You should also always remember that:

Complex stop-loss order set by a combination of factors 1-10, for example: below the trend line + Fibonacci + important level, etc. — this is the best stop, it is usually the most stable and correct! And if its price «carries out», then it usually goes the other way (against your trade).

Video — 12 ways to set a stop loss:

If you have any comments, ways, write in the comments!

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