optimal numbers for stop loss and profit target?

Wach80 said:
Hi , whats the optimal numbers stop loss and profit target? are there general rules for these things ?
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Depends on your trading strategy, holding period and price volatility.

For example if your strategy was identifying trends you wouldn't use a profit target. If it was identifying ranges then your profit target would be at the top of a range.

Longer holding period means wider stops. Higher vol means wider stops.

GAT
 
imagine you are trading crude oil (CL) on 5 minute timeframe . the average length of a candlestick in this timeframe is about 20 points /ticks which means your stop loss is about
200 $ . average volatility after a setup (price movement) of crude oil in US session is about 70 points which is 700 $ .
 
so with above calculation , you can use a target of at least 3 times of your stop loss .try to calculate average stop loss & average movements of a specific instrument & then compute optimal stop loss & targets
 
you can also add "break even" scenario into stop loss & target .for example if price moved twice of stop loss length then move stop loss to entry point and break even your trade .
 
Im trying to place a trade with a stop loss a bit below current price and it says invalid stop loss wtf is this? are there specific rules about stop loss?
 
Wach80 said:
Im trying to place a trade with a stop loss a bit below current price and it says invalid stop loss wtf is this? are there specific rules about stop loss?
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what is the trading instrument , price, and stop loss?
 
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Wach80 said:
Im trying to place a trade with a stop loss a bit below current price and it says invalid stop loss wtf is this? are there specific rules about stop loss?
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You're not clear. So I have to assume a bunch of stuff.

Place the order to buy the instrument.

After purchase, place a new stop-loss order to sell.
 
You're maybe using a the wrong order type.
Use buy / sell limit if price Above / Below.
Use buy / sell stop if price Below / Above.
 
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