Volatility stop loss

[mcginty]

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]

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.

 

[mcginty]

Hi Tom,
Thanks for your answer. I aim to hold positions for weeks or months.

 

[tomorton]

Then rayner teo should definitely be interesting. Nice youtube channel, terrible website.

 

[gerryg]

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]

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.

 

[TeslaTraderCo]

I prefer to use soft stops. I like to get out at best price even if it is a loss.