3ATR SL causing loss

#1
i have been using 3ATR value as both initial SL and trailing SL but most of my trades have ended up as losses. Even the ones on which i earned the profit, the amount of profit earned was very less. Can someone tell me what am i doing wrong? all my trades are in equities.
 
#2
Use 1ATR on close SL with new position. When yr profit is substantial, then you can extend to 2ATR. It's good to have some flexibility in setting stops.
 

AW10

Well-Known Member
#3
As far as I remember, professionals give more room to trade at the start (wider stop), and as trend matures, they start tightening the trailing stop (cause all trends eventually end).

Rohan, seems you have read about 3ATR trailing stop approach and using them. Great that atleast you have some approach of trailing stops. But Bhai.. it is important to understand the psychological impact of such wide stops. If you can't handle that impact, then probably u shd use some other trailing stop approach.

Give a shot to Parabolic SAR which automatically takes care of tightening the stops as trend matures.

Happy Trading
 
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