Stop Loss

[murray t turtle]

How is everyone calculating stop loss? Is it account based or chart based? Some people use percentage of account for each decision. Some use a chart point to signify a failure for the basis of the trade. Or a combination of both.

%%
Moving averages may work well, as long as you do the work.If they are not paying you dividends on it -thats a hint,2.
I guess about the worse exit idea i ever heard was on CNBC;'' traders selling on Friday so they are not in over the weekend''. LOL. Of course a stopped clock is right 2 times @ day LOL

 

[Steve Ladd]

My stop losses are the average of three common ways people calculate stop losses. I use an average because I see no advantage of one over another so an average seems best. The three calculations are 1) that price wherein I will have lost a certain percentage of a) the price when I entered or b) the recent high, whichever is greater, 2) a multiple of the ATR, and 3) a certain MA of the asset in question (price crossing downward over that MA). I calibrate these three things so the answers they give are generally fairly close to each other. This calibration is once-and-for-all for all trades, though I may recalibrate someday. I trend-follow long only and fairly long term so my % loss is pretty high, my multiple of ATR is pretty high, and the MA is a lot of days. Whatever my spreadsheet says is the average, that is the stop loss I enter. I periodically recalculate and amend the stop loss order if the stop price has changed by at least 1%.

 

[Xela]

I see no advantage of one over another

I don't mean it to sound like a criticism, Steve, but "I see no advantage of one over another" is another way of saying "I haven't done enough research/testing".

Unless by some remarkable coincidence all three types you mention perform exactly equally well, on your exact type/method/system of trading (and we both know that isn't really true, don't we?), then there is actually a "best performer of the three" among them, and a combination of backtesting and forward testing should disclose which it is.

Again - nothing personal! I'm "just saying".

 

[murray t turtle]

I don't mean it to sound like a criticism, Steve, but "I see no advantage of one over another" is another way of saying "I haven't done enough research/testing".

Unless by some remarkable coincidence all three types you mention perform exactly equally well, on your exact type/method/system of trading (and we both know that isn't really true, don't we?), then there is actually a "best performer of the three" among them, and a combination of backtesting and forward testing should disclose which it is.

Again - nothing personal! I'm "just saying".

%%
We dont see it as critical, XEla ;where are the ''cool sunglasses pic''?? LOL
I also can see one of the three that may be the worst.....LOL
Besides, Proverbs notes = a fool despises correction; NOT calling anyone a fool ,simply saying......

BUT even a 4th worst can be helpful ; i told a new trader ''if you use it once a year it can be helpful, 200 dma. '' Parabolic Stop + Reverse[aka Parabolic Time Price] hit the weekly barchart/candlechart SLV/silver ,parabolic silver move to $50/= about right!! Perhaps one reason it can be helpful==it seldom works well ,LOL. Parabolic stop + reverse stops are too wide, most do not want a longest term ,trend follow with big a draw DOWN LOL-LOL.Thanks..... ..

Mr More, i never met him ,but i like his trading info name= ''Moore Research ..... ..''