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curious if many of you use buy and sell-stop entries as an entry technique a significant amount of the time?
one nice aspect to it is that you may not be triggered into a few bad (losing) trades because price won't move into your stop order. another nice aspect is that you will always have a good idea for a stop-loss level if the buy/sell stop triggers you in -- ie, you can always use the a recent bar high/low that just occured prior to the momentum that triggered you into your position as a stop. |
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That is the only way I enter and exit a position. Brownsfan was spot on when he mention how you are trading with the momentum when using a buy/sell stop.