Hello all,

Anybody can point me to the right direction on how to set my stop loss appropriately?

Quite many of the time when i place a larger stop loss, the price hit my large stop loss and end up heavy losses.

But when i place a small stop loss, the price seem like tend to hitting the stop loss line very frequently and i have to repeatedly place multiple orders with the same small amount of stop loss and toward the same trend for a currency pair. With small stop loss, even i catch the right trend for a certain pair and earn significant amount of pips but overall i still having negative profit because i have lost quite many pips from many small stop loss trades during the starting of the trend.

Can you give me some guideline on how to set a appropriate stop loss?

Thanks.

Greetings!

That question is quite hard to answer.

Maybe google would help?
Maybe considering the Risk/Reward ratio?
If you are facing too many times the SL and less the TP, maybe it would be better to make a reversal trade?

Please note that we cannot give you any advices - it depends roughly on your strategy.

Hi Mason ,

Like dirk_r1 said, it's a matter of opinion.
Your SL and TP should be based on the trigger(engine) of the strategy and is set after countless trials and errors.
I started developing my strategy 8 months ago and that's how long it took me to get to a satisfying version.
But this is not the final version You have to constantly adapt to the market changes and adjust your strategy accordingly.
A little piece of advice:
- your TP and the bar/candle time are more important than SL. The SL is kinda' related to those two once you get them sorted.
- the TP should be directly proportional to the candle time. So, the lower the time is, the lower the TP is.
- you have to find a good ratio between TP and SL and the number of trades you expect your strategy to do.
- and last but not least, consider checking your strategy manually, with a little error margin to see how it works instead of using the historical tester. (checking the graph manually with your triggers and write them down on paper) I know it takes a long time, but imagine I did this with 10 min candles for 6 entire months Every single candle !

So, in the end, without a lot of work you cannot accomplish your dreams

Cheers

Thanks for the advice, really appreciate that.
Now i aware that SL and TP value are inter-related with the time frame of the candle bar.
Look like i have a lot of works to do to test various SL value as well as the TP value.
May i know what is historical tester?

JForex Menu -> Tools -> Historical Tester

Okay, i got it. Thanks.