Volatility stop loss

This is a discussion on Volatility stop loss within the Forex forums, part of the Markets category; Hi there, I'm new to FX trading but I have traded shares before. Looking to trade FX on a mid ...

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Old Sep 15, 2017, 4:06pm   #1
Joined Feb 2011
Volatility stop loss

Hi there,
I'm new to FX trading but I have traded shares before.
Looking to trade FX on a mid to long term basis, based on fundamentals. Trying to figure out a volatility stop loss using ATR but not sure how many periods I should go for.
Can anyone help?
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Old Sep 15, 2017, 4:55pm   #2
Joined Feb 2002
Depends on your horizon for wanting to stay in the trade, but I have heard of 2 x ATR14 being recommended in long-term trend-following. See rayner teo on Youtube.

I have used 2ATR once or twice in the absence of a more rational TA-based price level.
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Old Sep 15, 2017, 5:00pm   #3
Joined Feb 2011
mcginty started this thread Hi Tom,
Thanks for your answer. I aim to hold positions for weeks or months.
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Old Sep 15, 2017, 5:05pm   #4
Joined Feb 2002
Then rayner teo should definitely be interesting. Nice youtube channel, terrible website.
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Thanks! The following members like this post: mcginty
Old Sep 20, 2017, 5:40am   #5
Joined Sep 2013
Quote:
Originally Posted by mcginty View Post
Hi there,
I'm new to FX trading but I have traded shares before.
Looking to trade FX on a mid to long term basis, based on fundamentals. Trying to figure out a volatility stop loss using ATR but not sure how many periods I should go for.
Can anyone help?
Observe market non-stop for several month and you will work out mental stops as well as S/R levels where majority of market stops can be piled up. But without bank flow it's impossible to determine actual S/R which give edge to institutional brokers.

ATR and other technical stuff is basically useless.
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Old Sep 20, 2017, 7:48am   #6
Joined Feb 2002
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Originally Posted by gerryg View Post
Observe market non-stop for several month and you will work out mental stops as well as S/R levels where majority of market stops can be piled up. But without bank flow it's impossible to determine actual S/R which give edge to institutional brokers.

ATR and other technical stuff is basically useless.

Not useless, just not 100% reliable.
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Old Sep 21, 2017, 12:05pm   #7
Joined Apr 2017
I trade using a safety stop loss > 30 pips at order entry on my favorite trading period of 15 minutes. My ôreal ôstop loss is notional or mental. As the trade progresses, I tighten up the stop loss based on the ATR and the price action. If the trade is moving against me, I will place my mental stop loss and let the market take me out or turn around and go back to breakeven.
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Old Oct 1, 2017, 7:09pm   #8
 
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I prefer to use soft stops. I like to get out at best price even if it is a loss.
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