Overview of guaranteed stop loss

I use ATR for my SL, i becktested and found that 1.5 ATR/2ATR (depend on markets) is a nice zone for my algo, i would like to hear how you define your SL/TP, do you move them during the trend, do you also change them when news are coming ?
 
mercury-croc said:
Sometimes a stop loss can fail due to slippage when the order price differs from the execution price. This can result in positive slippage, but often traders suffer losses due to negative slippage. Likewise, GSL is effective when trading a volatile market and can prevent losses.
Pros​
1. Reduces losses
A guaranteed stop loss allows traders to limit their losses when trading in risky financial markets. It is also a great way to reduce losses in the event of financial news that can affect prices and cause volatility.
2. Protection of funds from market deficits
When financial markets open with a lower or higher price the previous day or when they open after a weekend, there can be an up or down market gap.
3. Effective against slippage
Slippage is when you place an order at a price, but the order executes at a different price due to volatility. When the market moves too fast, slippage is more likely. If you place a buy order at a price and negative slippage occurs, you buy the asset at a higher price than expected.

Cons​
1. Comissions
Many forex brokers charge a fee for using a guaranteed stop loss. This helps protect forex brokers from the losses they incur in the event of a gap down or slippage. For some forex brokers, a guaranteed stop loss is a premium feature.

Also, sometimes forex traders may pay a premium for a guaranteed stop loss, but it takes a long time to use it. This means that the financial market is operating normally and traders do not need to put in a guaranteed stop loss. Over time, this causes additional costs for forex traders.

2. Early stop
If you set a guaranteed stop loss too early and the market fluctuates before resuming a profitable course, you may be stopped out. This means that the broker closes your position and you lose potential profits.

So this is a sum up of GSL info, but has anyone tried comparing in real conditions?
Let's share experience!
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GSL? Is that some fancy Forex thing?

No. You just set a stop market. How much slippage are you expecting? hundreds of ticks? Get back to us when you trade real markets. Kthanksbye.
 
Overnight said:
GSL? Is that some fancy Forex thing?

No. You just set a stop market. How much slippage are you expecting? hundreds of ticks? Get back to us when you trade real markets. Kthanksbye.
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If you use a guaranteed stop loss order, you are guaranteed to be a bucket shop customer.
https://admiralmarkets.com/educatio.../forex-guaranteed-stop-loss-vs-non-guaranteed
More often that not, it will be the market maker who offers this service. A guaranteed stop-loss in Forex is like an insurance policy. You can take it out with the intention of protecting your trades, but hopefully you will never have to use it. The main points of a GSL in currency trading are:
  • It can only be placed 5% away from the current close.
  • Its use is frequently at the discretion of your Forex broker.
  • It can be placed by phoning in, instead of having to go online.
  • There can be time limitations. For instance, you may not be able to place a Forex guaranteed stop-loss within thirty minutes of the stock market closing.
  • Many Forex brokers do not offer GSL at all.
  • They tend to cost more to place than a standard order.
More...
 
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