Stop loss hit and trade goes your way/direction without you

AlphaT

Well-Known Member
#11
Definitely. I trade using a supply and demand strategy and usually place my stop right below/above a demand zone/supply zone. I do get stopped out occasionally but I guess there's no way around it, other than using slightly wider stops.
Yes, true! In cases where D/S zones are at traditional technical analysis sensitive points, the likelihood of a cluster of retail SL is higher so in those cases both Entry and SL can be kept lower to avoid get SL hunted!
 

NOMINDTR

Well-Known Member
#12
Hello Traders,

I'm very sure many of you'll have experienced this situation where you get Stopped out of a trade and the trade eventually does go in your direction, just without you.

This does happen to me occasionally trading my strategy and I'm looking to implement a new rule into my trading strategy that will help me around this and wanted to get your opinions on this

I've narrowed down 2 rules, both of them involve manually stopping myself out (so I would never put in a stop loss order into my trading platform).


1-15m Candle Close - The first rule would be to wait for a 15m candle to form fully and close below my stop loss. Several times I've noticed the 15m candle usually stops me out with a full candle which eventually turns into a wick and usually never CLOSES below my stop. So I basically get stopped out by a wick and the trade then resumes to go in my direction.

2-Double test - The second rule is to wait for price to hit my stop loss 2 times. So I would never exit a trade the first time it hits my stop (assuming it hits my stop and retraces back into a wick) and I would wait for the price to hit my stop loss a second time, and this is when I would exit the trade.

These are just a few ideas that came to my mind, what do you'll think would be a better strategy to implement keeping risk management in mind, and if you'll had any other experiences using different strategies to get around this problem.

Thanks
Don't WANT to be right. Just want to be profitable.
Hope this helps
 
#13
You need to give some room for the stock to move. Otherwise it's bound to happen. (Scalping is an exception)

For example, in my intraday set up, I keep 2% SL.

Here's what you can do.

1. You should first define how much loss you can bear per stock. Say, you can lose maximum Rs. 100 per day.

2. Now, calculate the capital required for you to lose just Rs. 100. After calculation, we found that the capital is 5000 for you to keep 2% SL and lose Rs, 100.

That's how you do money management.
 
#14
I know that you have thought carefully about this appriach before you shared it with us but it has some loopholes. I wouldnt recommend it. If you are kicked out of yur trade and then it goes your way but without you then just forget about it and pick another trade. Not setting a stop loss so that you can exut the trade manually is very risky. There is a good chance that emoions will take over you. Trust me, I am talking from experience. It will end badly for you. If you ac control yourself then it is ok, go ahead.
 

Simple.Trader

Well-Known Member
#15
Both of your rules are totally wrong. Please ignore them.
Backtest your entry method via entering at above X minute Bar via SLM and SL at below Pivot.
 

Similar threads