" BEST " method to use for Stop Placement ?

[Newc2]

Newc2,

I trade breakouts as well, and one of my struggles is re-entry after a stop out (fail breakout).

What is your criteria or recommendation on re-entry of failed breakout? I have been testing some retrace distance before price trys to break out again. For example, if stop out, then don't re-enter unless price retrace of 20 ticks.

i just enter on the next breakout bar. Once again the stop is placed below that bar. Yes I sometimes get chopped a few times but if the breakout is good then the rewards far outweigh the small losses.

 

[irniger]

#3, but not a stoploss with a figure, which in a gap situation might be easily reached with the price bouncing back and loosing all or some of the accumulated the profits.

Instead of a certain figure I use an Exit EA (in Metatrader) based on MA of an adaptive RSI and an ATR. This produces a belated exit but in many cases safes the profits. At the same time this indicator is the signal (among other conditions) to enter a new trade in the counter direction.

 

[Traderjohnsblog]

i just enter on the next breakout bar. Once again the stop is placed below that bar. Yes I sometimes get chopped a few times but if the breakout is good then the rewards far outweigh the small losses.

I trade breakouts the same way including stop placement. I will sometimes drop down to a lower timeframe to find the optimum point to enter the failed breakout. That reduces my risk considerably.

 

[Newc2]

To understand where to place stops one needs to understand structure of the market. Then you can get a stop in nice and tight with low risk of being hit, and at the same time giving maximum reward to risk.

 

[murray t turtle]

Who invented the stop loss? Is there any history on its development?

%%
Great question. It may have started, in the Smoot- HawleyTariff[tax]-insane leverage bear market of 1929. NOT a prediction;200 period moving average can help.