FetteredChinos
Veteren member
- Messages
- 3,897
- Likes
- 40
well, average daily range on the dow at the moment is approximately 70 points..
if you are daytrading you could probably use 70-80pts as a disaster stop and rely on other exit criteria if the reasons for being in a particular trade have been violated.
if you are daytrading you could probably use 70-80pts as a disaster stop and rely on other exit criteria if the reasons for being in a particular trade have been violated.
frugi
1
- Messages
- 1,843
- Likes
- 133
The appropriate stop loss broadly depends on the type of method, setups and time frame you are using, then the price action unfolding can indicate appropriate exact levels to fine tune it.
I'll use anything from 4 to 25, depending on the setup, time frame and price action. Sometimes up to 50 for overnights.
As a rough rule of thumb I look for about 1:1 and a bit (R:R) so an 8 point stop would be looking for a 10 point profit.
I mainly trade intraday and try to grab 5-40 points here and there, when I'm not making a mockery of my system of course.
you might want to ask TraderTony, tradesmart or Chartman (to name but 3) as they are better qualified.
I'll use anything from 4 to 25, depending on the setup, time frame and price action. Sometimes up to 50 for overnights.
As a rough rule of thumb I look for about 1:1 and a bit (R:R) so an 8 point stop would be looking for a 10 point profit.
I mainly trade intraday and try to grab 5-40 points here and there, when I'm not making a mockery of my system of course.
you might want to ask TraderTony, tradesmart or Chartman (to name but 3) as they are better qualified.
Most good moves seldom produce more than 20 point pullbacks......... Gear that to a typical 1% loss... So, if a position goes more than 20 against, chances are you are completely wrong in direction.... or the move is over.Plenty of other options, only you can decide what suits you in the end.
