stops are an essential part of any trading strategy, but how exactly should they be handled?
when i first started trading, i used trailing stops exclusively. i always wanted to "lock-in" that profit. it caused me to not be so profitable.
then i switched to completely static stops and targets. profitability increased, but so did my stress levels.
now i'm to a point where i move the stop to breakeven after (on es) 2 points profit, and trail one point behind when 2.5 points profit is hit. i'm thinking this strategy isn't the best, so now i'm back to a place where i need to re-evaluate my stop strategy.
what i think i'll start doing is have the stop moved to b/e after about 1.5 point profit, unless the trade is right at a s/r level, at which point i'd let the stop hang until the price broke considerably. then i'll move the stops manually, either to a s/r level, or behind a big bid/offer.
does anyone have any discussion to add to this?
when i first started trading, i used trailing stops exclusively. i always wanted to "lock-in" that profit. it caused me to not be so profitable.
then i switched to completely static stops and targets. profitability increased, but so did my stress levels.
now i'm to a point where i move the stop to breakeven after (on es) 2 points profit, and trail one point behind when 2.5 points profit is hit. i'm thinking this strategy isn't the best, so now i'm back to a place where i need to re-evaluate my stop strategy.
what i think i'll start doing is have the stop moved to b/e after about 1.5 point profit, unless the trade is right at a s/r level, at which point i'd let the stop hang until the price broke considerably. then i'll move the stops manually, either to a s/r level, or behind a big bid/offer.
does anyone have any discussion to add to this?