Hi Everybody,.
I am often asked when Traders should protect their trades with a “initial” stop loss adjustment. With Daily Charts we use the 100% initial risk guideline, but we normally give Intraday charts more “wiggle room”. However, when a trade is “uncertain” or “against” the larger degree trend (15min Charts), then this 100% initial risk guideline can help avoid a otherwise losing trade.
A good example was the TS1 buy on the 3min ES from yesterday. As you can see, this ES reached the 100% initial risk level before declining. So raising your protective stop to break-even would have meant a “break-even” (or flat) trade, so no loss, which is always good........
But why do it on this trade, and not others ? Well it is all about the larger degree (15min ) chart, so for this please take a look at the Advanced Blog.
Thanks, Steve
I am often asked when Traders should protect their trades with a “initial” stop loss adjustment. With Daily Charts we use the 100% initial risk guideline, but we normally give Intraday charts more “wiggle room”. However, when a trade is “uncertain” or “against” the larger degree trend (15min Charts), then this 100% initial risk guideline can help avoid a otherwise losing trade.
A good example was the TS1 buy on the 3min ES from yesterday. As you can see, this ES reached the 100% initial risk level before declining. So raising your protective stop to break-even would have meant a “break-even” (or flat) trade, so no loss, which is always good........
But why do it on this trade, and not others ? Well it is all about the larger degree (15min ) chart, so for this please take a look at the Advanced Blog.
Thanks, Steve
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