Hi riders,
Many have asked me about how I set my Stop loss when I enter a trade after a bounce or take profit signal.
Here I share some TIPS that I hope will be useful. 1. A Stop Loss should be no more than 20% and ideally less than 10% versus your entry price.
Use Limit orders if you want to reduce risk considerably (you won't catch all trades doing this but your downside will be lower and return higher. (highly recommended for less experienced traders)
If the percentage is too high, reduce leverage or skip the trade.
2. Look for reference to put the Stops loss , i.e: a trend line in the same timeframe.
3. Look for a higher timeframe to validate if the support/resistance line coincides, that makes the level stronger.
4.PRO TIP: you can use the RSI limit sub-indicator as a support/resistance line in case there is no other and the price has just crossed it.
5. If there is no support line nearby, the risk is higher so if you decide to enter put the SL slightly below the candlestick where the signal was confirmed. (in this case i would wait for a bounce and +Attention/M combination(
longs
shorts
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