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What is your feeling on fixed stops? In the videos I hear you comment on trailing stops but in the book you have an example that leads me to believe you should never move them. Also how many pips do you prefer for the stop loss end I have my system automatically set the profit target to 90 pips.
2 Responses to Fixed Stops or Trailing stops
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Hi
My use of stops is as follows. Initially upon opening a trade I will instantly place a 30 pips stop loss from entry price. This is my INSTANT emergency stop, this is just so that I DO have a stoploss to protect against unlimited losses.
I then take an overview of the trade and will generally move that stop to 20 pips. I then take another look and move to 15-16 pips where it stays until the trade starts to move off in my favor. I will NOT move that stop until something happens that tells me that it is safe to do so and I will not be victim of fixed stops or trailing stops targeting by the market makers.
I would NOT be AUTOMATICALLY setting orders as this is not reading what the market makers are doing so that you can monitor any changes to then take advantage of.
In my book I explain how stops are used by the market makers as an accumulation tool. It is important to understand how this works so that you do not become a victim.
Martin
Many thanks for posting this Martin, Ive never been 100% clear on your stops policy but now i am! I also start with 30 or 25 but am now very wary of moving them much given how easy it is to be a victim of more stop hunting which is ten times as annoying now that we know how they do it!! I dont feel confident enough yet to have it only 15 away but its good to know its possible and preferable to do that and keep potential losses small so will work on that