Volatility stop loss

mcginty

Junior member
20 0
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?
 

tomorton

Legendary member
7,371 995
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.
 

gerryg

Established member
900 6
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.
 

tomorton

Legendary member
7,371 995
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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