Morning Surf.
One of my neighbors farms almost 8K acres, hedges and speculates to give balance to his operation. On that note, a couple years ago he complained to me that he was constantly being stopped out of his positions. He ranted on and on about those stupid floor traders and how they would search out his specific stop orders and fill them and then the market would explode and his would be left holding the bag. We both know that they don't "look" for "his" orders.
I showed him how to read the longer term support and resistance levels the markets create inside each of the contract months and to place his stops "outside" of those S/R ranges instead of arbitarily as he had done in the past. Since he has been applying this technique his hedges and spec trades are stopped out a whole lot less and his profits have greatly increased. He went from an 65% stop ration to 20% and those times he is stopped out it is usually on the extreme tops or extreme bottoms of those contract moves. Areas where being stopped out is a benefit.
What I mean by that is, agriculture producers are usually only able to watch the charts either at the begining of the day or end of the day after their other more critical work is done. If an extreme oscillation is created and a pullback starts in the middle of the day, a stop will protect profit that they had already locked in. I suggest adjusting stps in Swing or Position trades either off the high or low of each day, respectful of the trade or hedge direction or off a faster oscillation.
