Placing a Stop Loss
Where To Place Your Stop Loss
When entering a trade, you should understand and know your risk first before worrying about your potential reward. There is no strategy in the world that can offer a 100% winning ratio. That’s why we have to place a stop loss to minimize our losses when the market decides to go the other way. There are multiple ways where we can place a stop-loss on this strategy.
- The baseline forms a horizontal line(low risk)
- Count 10-20 Pips below or above the buy/sell signal(medium-high risk). This depends on what timeframe you’re trading on.
We recommend using the Baseline for placing stop loss. The red dotted line shows the stop loss level. This strategy is low risk. However, since the stop loss level is quite close to the entry. You may get stopped out too early, we suggest moving your stop loss according to your risk tolerance.