Stop loss / take profit intra day trading

Hi all.

I'm finding that no matter where I set my stop losses the market seems to find a way to trigger them. I'm not talking just during times of massive volatility either like 8am or 14.30 but just generally.

However, I'd like to use them as just today a 1.6% candle out of no where took out 16% of my leveraged position.

I find that I'll be watching a trend and I'll draw in a line for example and to be safe position it a couple of percent above or below the trend but nearly every time a rogue candle will pop in an stop me out, often just prior to going in the direction I had calculated price would travel. The other alternative would be to put the SL 0.5% away to mitigate losses but I reckon it'll get trigger regularly enough still that it would work out more costly than to just take getting wrecked now and then when the algorithms decide retail need to get liquidated.

I'm all ears for how others approach this problem.

Ta
 
S

Smith2525

What type of broker do you use out of interest? Have you tried comparing the charts with others in case of foul play? Some are known for stop loss hunting
 

tomorton

Legendary member
Maybe you need a less volatile market? What are you trading where you see such rogue candles on the chart? Maybe they happen only during certain periods, which you can simply avoid?
 
Maybe you need a less volatile market? What are you trading where you see such rogue candles on the chart? Maybe they happen only during certain periods, which you can simply avoid?
UK100 - US100 - WTI Oil -

Currency pairs obviously don't trigger them.

I notice that I have been having this more since Ukraine conflict but it still happens when not at war. Perhaps I need to go down to x5 leverage.

Dunno
 

tomorton

Legendary member
I was wondering about forex - they can be more forgiving as they are less volatile and less prone to minor news impacts than other markets. Not all forex pairs are equal - even though they're mostly low volatility some are extremely low.

Low leverage is often a feature of forex. There's no reason to be in such a hurry you run anything higher than 1:30.
 
I was wondering about forex - they can be more forgiving as they are less volatile and less prone to minor news impacts than other markets. Not all https://www.etoro.com/trading/market-hours-and-events/ are equal - even though they're mostly low volatility some are extremely low.

Low leverage is often a feature of forex. There's no reason to be in such a hurry you run anything higher than 1:30.
Yes I'm looking into trading FX pairs more often.

It's mainly my scalping of indices and oil etc that's getting messed up.

I have never used leverage above x30 which only I used on FX pairs. Everything else is x5 - x20 depending on the size of the position.
 

sharabela

Active member
Hi all.

I'm finding that no matter where I set my stop losses the market seems to find a way to trigger them. I'm not talking just during times of massive volatility either like 8am or 14.30 but just generally.

However, I'd like to use them as just today a 1.6% candle out of no where took out 16% of my leveraged position.

I find that I'll be watching a trend and I'll draw in a line for example and to be safe position it a couple of percent above or below the trend but nearly every time a rogue candle will pop in an stop me out, often just prior to going in the direction I had calculated price would travel. The other alternative would be to put the SL 0.5% away to mitigate losses but I reckon it'll get trigger regularly enough still that it would work out more costly than to just take getting wrecked now and then when the algorithms decide retail need to get liquidated.

I'm all ears for how others approach this problem.

Ta
The market never cares about randomly setting stop loss or take profit. It does not matter how far or close you set them up. It is about charting technique, trend, and reversal. One needs to master on these things to be able to set stop loss and take profit at the most lucrative spot.
 
 
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