How do I trade this with stops?

[rsd886647]

I want to use an entry stop of 50% ATR, which would be about 20 points. Then I was thinking about a trailing stop, but the daily ranges are often 60 points. I can't afford to get stopped out often. This example is one of many from the issues that I have traded until now.

I guess I would be thinking about setting a break-even stop-loss in the first instant, but how would you trade this from there?

Cheers. Rob

 

[jiggly]

what is your entry rule? why are you entering there where you say you are entering?

from what I can see on your chart, you are getting in somewhat early, and compensating with a large stop to absorb your early timing

look at the chart I have annotated,

this is a good entry rule that you can use which is better, and give better Risk to reward.

if you want to implement trailing stops you can do that, just above the high of the last bar.

otherwise this trade is good to return 4-5 x risk

 

[intradaybill]

I want to use an entry stop of 50% ATR, which would be about 20 points.

Something doesn't sound right. Do you mean 5% ATR?

 

[rsd886647]

I'm just starting out putting the theory into practice, so I can see from what you say that this isn't a good point for entry. I don't know many (if any) of these set-ups? Where can I find more of them? The one you have shown here is nicely illustrated, and the links I've been given in the past no longer contain images in many cases.

As for puting a stop at 50% of the average true range, it's what was suggested in Van Tharp's book for swing trading, if I have it right, given that there is a lot of volatility in the markets I am trying to trade (miners).