Any thoughts?

Rambo35

Active member
227 6
Setting Stop Loss to tight
I know everyone has a different approach, strategy and preference when it comes to stop loss orders. I have come across several forum posts or blog posts where traders set a stop loss order less than 10 pips away from their entry. I know scalpers keep them tight.

I am just assuming that placing it at 10 pips or less often leads to a trade being stopped out way to pre-mature, but again that is my opinion. It also appears that you are more down the gambling path with a stop loss which is too tight. On the other hand I guess if you get stopped out too early in 90 trades out of 100 and used 10 pips you have lost 900 pips and if your 10 profitable trades earn 100 pips you are profitable in your account (assuming you trade the same lot size), but then you are not a scalper.

I know it is possible from a mathematical point of view and those who can risk 10 pips to make over 100 on a consistent base, not bad and keep it up. I do think that unfortunately there are more traders who risk 100 pips to earn 10 pips.
 

robertofx

Active member
139 1
Setting Stop Loss to tight
I know everyone has a different approach, strategy and preference when it comes to stop loss orders. I have come across several forum posts or blog posts where traders set a stop loss order less than 10 pips away from their entry. I know scalpers keep them tight.

I am just assuming that placing it at 10 pips or less often leads to a trade being stopped out way to pre-mature, but again that is my opinion. It also appears that you are more down the gambling path with a stop loss which is too tight. On the other hand I guess if you get stopped out too early in 90 trades out of 100 and used 10 pips you have lost 900 pips and if your 10 profitable trades earn 100 pips you are profitable in your account (assuming you trade the same lot size), but then you are not a scalper.

I know it is possible from a mathematical point of view and those who can risk 10 pips to make over 100 on a consistent base, not bad and keep it up. I do think that unfortunately there are more traders who risk 100 pips to earn 10 pips.


Got to agree with you coz I tried this 10 or less pips sl method and I failed. But I know some traders specially scalpers success in scalping with a small SL.

Now my minimum SL is at 40 + pips per trade according to my risk & R/R
 

ffsear

Senior member
2,157 439
I don't have a fixed stop loss. I look at the charts to find a point where my analogy is wrong. Thats where my stop loss is. Some times its 20, sometimes its 200.
 
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Rambo35

Active member
227 6
I don't have a fixed stop loss. I look at the charts to find a point where my analogy is wrong. Thats where my stop loss is. Some times its 20, sometimes its 200.

I think as long as you remain withing your risk management it is whatever is on the charts. I do not have a fixed SL either, but never go over my risk management protocol.
 

perox

Member
87 0
I don't have a fixed stop loss. I look at the charts to find a point where my analogy is wrong. Thats where my stop loss is. Some times its 20, sometimes its 200.

Hello ffsear,

I am following the similar strategy. Variable stop loss based on the trading setups.
 
 
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