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i ve got a problem when i go long or short i start to earn money but i dont know when i must to exit so my profit became lost i use 1 minute chart with Exponetial moving average i buy and sell on breackout does any one knows the formula where to put stop loss and the trailing stop ???
for example i buy at 1 $ go long i start to earn in trend after 10 minutes 1.50 $ where i must to put the stop at 1.40 1.30 ???
i know there is a formula which use Average true range to calculate the trailing stop ???
thanks a lot |
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First... are you making money trading off a 1minute? I ask this because almost every single trader I met will the say the same thing. 1 minute charts are not for trading... way too much noise.
Second, your stops should be dependent on your particular setup/trade. For example, are you fading the previous day high? If so, a stop above this level would make sense. Are you buying a pullback of an uptrend? A stop below the previous swing low would make sense. Playing breakouts? A stop below the breakpoint and then move to b/e would make sense. Why are you entering a buy/sell? Based on what? You need to study your strategy and reasons for the trade more in depth in order to find the stop placements that are optimal for you. Some use stops that are dependent on volatility, ATR, candles, pivots, or fixed stops. Perhaps post a chart of a particular trade and members here can add some input so you can figure this out.