A superb Cease Loss setting is an important factor of buying and selling system.
For example you will 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 recuperate to 1000USD ( 500 * 200% = 1000) .
That is tougher then you definitely misplaced -50% , the piont is that you need to cease your lose nearly as good as doable, the steadiness you misplaced extra , the a lot tougher you recuperate.
It is not saying {that a} small vary’s StopLoss setting is the perfect, if the cease loss degree set to too small, your place will likely be simply hit by the market transfer , particularly when the information/information come out.
So, find out how to set the perfect cease loss degree ? There’re some base concepts:
1. use latest Help degree or Resistance degree
2. By Boll band
3. By buying and selling quantity peak
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