Setting "Proper" stops in trend strategy?

[tomorton]

As we both know, the broker can't move the entire forex or futures market a bean so this argument against using stops is a bit silly.

I know that Vis, but the stupid losing traders who complain about their stops getting hit don't know this.

I was trying to convince them how stupid they are, not that I am as stupid as they are. You do realise I recommend always using stop-losses don't you?

 

[tomorton]

I don't understand any of this, sorry.

I agree, its meaningless. Maybe its a computer translation.

 

[Visaria]

I know that Vis, but the stupid losing traders who complain about their stops getting hit don't know this.

I was trying to convince them how stupid they are, not that I am as stupid as they are. You do realise I recommend always using stop-losses don't you?

Yes, of course. Totally agree with you.

 

[qlai]

qlai - I am drawn to conclude you think I am an idiot........ or are you just having a laugh?

Everything I post, I do in a form of a question, even if I don't use a question mark. I always assume I am the dumbest guy in the room and I often am.

 

[murray t turtle]

I tend to do fixed (but i change that amount to what i feel is appropriate) quite tight stops, with quite a few re -entries....

%% I seldom do fixed tight stops unless its SDOW+ profits are threatened; not very often.
Fixed stops on 50 day moving average can be useful; but good thing about those, not many re-entries, or tight sops.
You plan sounds good if you dont pay to much for comissions , or you like intraday trading

 

[Steve Ladd]

ATR20 is Average True Range averaged out over 20 bars - daily bars in my case. The range is the distance between the day's high and the day's low. ATR20 is a commonly used averaging period and many traders use 2 x the ATR20 as a way to calculate how far away to place a stop-loss: so, price would have to move more than twice the average daily range from the last 20 days in order to hit the SL - pretty unlikely such a move would be due to noise or just normal volatility.

You once said you use wide stop losses but this seems narrow. Have you narrowed them up?

 

[tomorton]

You once said you use wide stop losses but this seems narrow. Have you narrowed them up?

Yes. You think 2ATR20 is narrow?

I have used 5ATR20 and may soon go back to it. Tired of getting shaken out of good trends by silly volatility.

 

[Mnewton]

Never set stops. Mm's bounce stock prices to flush out stops

 

[Carneros8]

Yes. You think 2ATR20 is narrow?

I have used 5ATR20 and may soon go back to it. Tired of getting shaken out of good trends by silly volatility.

tomorton, I'm getting to understand the ATR stop, but please help me so I can understand it in completion especially the trailing ATRs.

My understanding is that upon opening a trade, you look at the ATR value and you set your stop to 2x that value. That is understood and clear. However, when the market goes in your favor and ATR increases, the trailing ATR value is the current (higher) ATR value -2x that value or current (higher) ATR value - 2x the original value upon opening the trade?

 

[nooby_mcnoob]

tomorton, I'm getting to understand the ATR stop, but please help me so I can understand it in completion especially the trailing ATRs.

My understanding is that upon opening a trade, you look at the ATR value and you set your stop to 2x that value. That is understood and clear. However, when the market goes in your favor and ATR increases, the trailing ATR value is the current (higher) ATR value -2x that value or current (higher) ATR value - 2x the original value upon opening the trade?

I use trailing stops with ATR. Rarely hits depending on period you use