A very good Cease Loss setting is crucial factor of buying and selling system.
As an example you may have init steadiness 1000USD , you entry a order and misplaced -50% , then you definitely left 500usd solely , which imply you should make your account enhance 100% to get better to 1000USD ( 500 * 200% = 1000) .
That is tougher then you definitely misplaced -50% , the piont is that you need to cease your lose pretty much as good as potential, the steadiness you misplaced extra , the a lot tougher you get better.
It isn’t saying {that a} small vary’s StopLoss setting is one of the best, if the cease loss degree set to too small, your place will probably be simply hit by the market transfer , particularly when the information/information come out.
So, the right way to set one of the best cease loss degree ? There’re some base concepts:
1. use current Help degree or Resistance degree
2. By Boll band
3. By buying and selling quantity peak
