Get started

Stoploss

How To Calculate Pip Value, Risk & Trade Size TutorialHey Traders, in this idea we are going to break down step by step, how a professional trader calculates pip value, risk and trade size. The focus of this lesson is aimed towards helping you get an idea of how you can create your own risk management plan in order to remain consistently profitable over a long period of time. You can have the best strategy in the world and still lose consistently without a solid risk management plan. In fact, in my personal experience with teaching traders, I have found that many traders who do not succeed are actually using a profitable strategy! These traders would have made money if they followed their risk management rules but that tends to go out the window when we do not see how the numbers work out for ourselves (among many other reason). It is important that you use these calculations that I have broken down on these charts over and over again until it makes perfect sense to you and then apply them to your own trading. If you do nothing else at least make sure the numbers work for you! I hope this short tutorial helps you get started on creating your own risk management plan and please be sure to comment below with any questions you may have. If you like this tutorial please give this lesson a thumbs up and I will cover more on this topic In a future lesson. Thanks Traders, If you would like access to a spreadsheet that automatically calculates all of this for you, please request one using the link below and I will send you my personal spreadsheet for free. goo.gl Also if you have not done so please follow me at TradersNsights Facebook page as I plan to start posting daily market updates and predictions over there that may be helpful to you. www.facebook.com
Education
by Alec40
17
Bitcoin Daily Update (day 232)I believe that it is possible to beat the market through a consistent and unemotional approach. This is primarily achieved through preparing instead of reacting. Click here to learn more about how I use the indicators below and Click here to get my complete trading strategy! Please be advised that I swing trade and will often hold onto a position for > 1 month. What you do with your $ is your business, what I do with my $ is my business. I recently posted Bitcoin Bubble Comparison - 3 Day Chart . It provided new dates and prices for the bottom, however it’s still slightly too early to abandon my predictions from the previous Bitcoin Bubble Comparison ]Bitcoin Bubble Comparison: 1 day - 5 days = < $5,750 | bottom prediction: $2,860 by 10/30 | | Calling for $35 ETH around the same time Previous analysis / position: Left a comment on October 18th’s post saying that I wouldn’t be able to do the daily update and that I was watching the 4h TD Sequential and Stochastic. Still felt good about short positions due to $6,400 holding as strong resistance / Short BTC:USD from $6,367 | Short USDT:USD from $0.968 Patterns: Descending triangle / hyperwave Horizontal support and resistance: S: $6,400 | R: $6,428 BTCUSDSHORTS: Appear to have created a lower high without re tested top of triangle Funding Rates: Longs pay shorts 0.01% Short term trend (4 day MA): Broke through 4 but now pulling back below. Wait to see where it closes before considering it bullish Medium term trend (4 week MA): Bear Long term trend ( 32 Week): Bear Overall trend: Bear Volume: Last few days have been well below MA FIB’s: 0.618 = $6,530 | 0.5 = $6,441 | 0.382 = $6,351 Candlestick analysis: Bearish spinning tops, today forming bullish spinning top Ichimoku Cloud: Fell out of 4h cloud, but still has not gotten kumo twist or bearish TK Cross. 1h cloud shows a lot of resistance from $6,400 - $6,480 TD’ Sequential: 4h: G3 | 12h price flip Visible Range: Showing strong resistance from $6,400 - $6,800 Price action: 24h: +0.57% | 2w: -2.72% | 1m: +0.5% Bollinger Bands: Continuing to resist daily MA Trendline: Top of descending triangle = $6,670 | Phase 2 hyperwave = $6,000 Daily Trend: Chop Fractals: Up: $6,792 | Down: $6,057 RSI: Hanging around 50 on all time frames Stochastic: 4h starting to rally after calling a good buy. Daily is recrossing bearish after a double top Summary: I entered based on the 12h red 2 below the red 1 in combination with the button top. Based on that entry I should be setting the stop loss above the 12h red 1 at ~$6,501. That is only 2% risk and there really isn’t reason to set it tighter than that. After taking a number of losses I start to second guess my entries and stop losses. Sometimes I have an inclination to tighten the stops due to be afraid of losing and other times I have a tendency to really widen them due to being frustrating from getting whipsawed. The last couple weeks have been a lot of the former. Instead of using the stop loss that the TD’ Sequential trading system outlines, I used an approach from Wyckoff. He states something along the lines of: “When there is a breakout / breakdown of a trading range and the price quickly returns to the middle of the range then it was likely a fakeout” I entered on the $6,400 breakdown and figured that a return to > $6,450 would indicate a fake breakdown which usually precedes a strong rally. So I set my stops at $6,451 on BTC’ and $204.2 for ETH. Fortunately the BTC’ stop didn’t trigger, unfortunately the ETH’ stop did and there was not the follow through that I was expected. As it stands now I was stopped out on the very top on a 1h wick (which was a green 9). Trading successfully long term is much more about losing than it is about winning. Prolonged losing streaks will challenge your motivation, confidence, sanity, and finances. Risk management is only one piece of the puzzle. The other part is emotional control, and I could argue that is even more important. You can tediously manage risk 99% of the time, but that won’t matter if you let your emotions get the best of you on the other 1%. I have found two very important ways to help control my emotions after taking a string of losses. First I shut off the computer and take a day off. I go outside, socialize and gain some perspective. Then I come back re charged and ready to get back in the trenches. Another thing that really helps is not adding to losing positions. It can be very tempting to add at a better price when a position moves against you. Controlling that urge will help to minimize losses and maximize wins. Furthermore it will cause less stress/anxiety when things are going your way. Set the stop loss then forget about it! In regards to my USDT:USD position, I feel comfortable holding onto that as long as BTC’ is rallying. If it starts dumping then I will look to exit that position. I went to a bbq last night and today I am playing in a golf tournament. By this time tomorrow I expect to feel fully reinvigorated.
BITMEX:BTCUSD.PShort
by Sawcruhteez
1
ICX appears to be within an Ascending Triangle pattern.ICX/BTC appears to be within an ascending triangle pattern. This type of pattern is usually bullish. I've laid out a few scenario's of what I think will happen. Scenario 1 (Green Arrow): ICX/BTC bounces off the sideways support (around 1000 sat's) and moves to the upside breaking through the top of the ascending triangle (around 1090 sat's), of which the target area would be around 1250-1300 sat's. Scenario 2 (Yellow Arrow's): ICX/BTC bounces off the sideways support and moves to the top of the ascending triangle pattern before getting rejected again. It could then retest the sideways support a second time before moving up and breaking out of the top of the ascending triangle and then starting its move toward 1250-1300 sat's. Scenario 3 (Red Arrow's): ICX/BTC fails to hold the sideways support and breaks to the downside. Additionally, it could successfully hold the current retest of the sideways support, move up to the top of the ascending triangle, get rejected, then fall back down to the sideways support line before eventually breaking through it to the downside. If this occurs, I will be watching 850 sat's as a possible area of reentry, and if that fails to hold, then 790-800 sat's. (790-800 sat's was the bottom we hit back in mid August, and was the springboard for it's move to around 1450 sat's in late August.) RSI on the 4-hour is seeing a little movement downward, but it's fairly neutral otherwise. Daily RSI is neutral for the most part. MACD on the 4-hour did get a bearish crossover around 11 PM on October 3rd, indicating a potential for more short-term downside. Daily MACD got a bullish crossover around September 20th, and the Weekly MACD also got a bullish crossover around September 24th which could indicate upward movement on a larger time frame. To go along with that, Stochastic on the 4-hour is oversold, and could see a turn-around soon. Daily Stochastic got a bearish crossover today, but that might coincide with our retest of the sideways support line, so I'm not reading too much into it, especially with the 4-hour Stochastic oversold. As always, keep an eye on Bitcoin and it's price movements as well, since it can be a major influence on alt-coin movements. Entry: 998-1015. Target: 1250-1300. Stop-loss: 955. --This is not financial advice or financial recommendations. This is merely my opinion. Do your own research and come to your own conclusions before buying/investing. I am not liable for any losses incurred.
by Deftsuo
BTC Update! Recognizing support & resistance levels!Good evening everyone! We had about 48 hours of nothing occurring since last update. Two charts ago we were watching to see which side caved with the 3 supports in $6400's and 3 resistances in $6600's. The bears won that battle and sent us down to $6399 which is when I entered some positions, using $6320 as my stop loss based on the next support level. We then saw a rally up where again, we knew we had 3 resistance spots of $6610, 6640, and 6642. This has me taking some profit in the upper $6500's just to lock the profit in and recognizing potential resistance spots. We topped out at $6603. Last chart I discussed just having patience with the remainder of my position and if bulls could not break the resistances, I'd be watching for a 4 hour higher low to be formed and this would then become an updated stop loss area just to protect profits. Bulls established that at $6511 on the consolidation. And finally after literally no movement up or down for a while, we saw the bulls try and make their move. They rallied straight to, you guessed it, resistance. $6641 is where this move topped out. I personally left my position in tact as was not at a computer to move from SL to profit taking but do not believe I would have exited anyways. At this time, I'll ride the stop losses to protect profits and wait to see if the bulls can prove themselves and get above the resistance spot now at $6641 and $6642. So we essentially have a triple top including $6640 from before. Ok, so am I bullish or bearish? Overall I am neutral because the weekly remains in an equilibrium pattern. So let's weigh some positives and negatives of current market. Positive, bulls got above the high from 2 days ago at $6603. Negative, they still could not beat the 3 resistance zones, getting ahead of $6610 and rejecting hard with the triple top. Negative - the upper wick on the candle screams profit taking just as it did before. I'll keep a few stop losses loose personally just to avoid the market makers fishing for those stops as this market continues to be easily moved with thin order books. Market is in a bit of a channel currently as well so I am keeping a close watch on that. While I'll happily stop out if higher lows are lost and protect my profit, I'd then be watching the channel to re-enter positions and use the channel as a SL if needed. Lots of ways to play this market but overall its currently a market I am not dedicating a ton of time to as the moves have been small so a couple of checks on the chart each day just to see where things are and if I need to adjust stops or alerts. Just My 2 Sats!
COINBASE:BTCUSD
by My2Sats
Strength building on BitShares BTS. BullFilter shows a Long.Analysis: Correction ended mid August and accumulation has been going on since. The amount of selling in the 1500-1600 range represented capitulation of weak hands. BullFilter showed a bullish divergence from Late August until Sept 12, when the price action finally caught up. With some nice recent spikes in volume some upward price movement is expected in the next 2 weeks. Entry: Enter between 1700 and 1750 upon the completion of this downward wave. Now that we know we want an entry in this range, we will use BottomFinder here to select us a great entry point (Example below) Take Profit: The dashed red lines represent target take profit levels. We suggest cashing out 10% at T1, 35% T2, 40-50% T3, 5-15% T4. StopLoss: SL set to 1600 to avoid the liquidity pool from 1650-1700 and being stop hunted. 1700 is also currently acting as local support. Upon completion of T1 move stop loss to entry point to secure a risk free trade. Additionally continue moving stop loss up by one target each time a new target it reached. i.e. when T2 is reached, move stoploss to T1 level. This way you can ride out dips with no anxiety and automatically exit the trade in profit should you not be around to monitor!
BLong
by theheirophant
7
Trailing Stop Loss RuleAs you trail the stop loss with the 6 Day RPR, remember to maintain discipline by not moving the stop loss back away from the retracing market. In other words, if you raise your stop loss, then keep it there. Period. ONLY MOVE THE STOP LOSS TO TIGHTEN AND NOT TO LOOSEN THE DISTANCE. This rule applies to whatever indicator or means you are using to trail your stop loss. Trailing a stop loss means only trailing it behind, not doing the opposite and moving it away from the retracing market price. In this example of the CHFJPY your stop loss would have been maintained at the previous day's 6 Day RPR low of 116.4480 and not moved down to 116.0888, which is the current days' 6 Day RPR low.
Education
by chris333
BTC Waterfall as expected! Still another 4 hour lower highWow, we had some nice volatility today. And this was the cascade I was speaking of yesterday. Yesterdays post I stated "We have a lot of recent lows from 4 hour chart to be watching including $6208 from today, then $6191, $6177, and finally our low from when the bounce first started on this move at $6116. I would not be surprised to see all 4 of those levels get taken out together as many in positions will utilize those areas as stop losses and odds of us cascading down and straight through them is fairly high in my opinion if RSIs are able to cool off first". And just over 24 hours later we watched the drop from $6330's straight through all of those prior levels in about 1 hour with our new bottom at $6106. This is just a simple thing of recognizing where stops will likely be triggered and it won't matter if news related or not, stops are established and once triggered, we see the waterfall effect. The positive out of this is the bulls bought the dip hard. Traders were waiting at the bottom for each resistance to be taken out to buy the dip, give the V shaped recovery and then scale out along the way up. The negative, even with a 6-7% bounce in 30 minutes, the 4 hour chart still only gave another lower high with our top at $6511 compared to our most recent lower highs of $6530, $6565, and $6580. Same deal, traders recognizing where the resistances will be and scaling out prior to lock in profits. Also on a positive tho, just as we had a bunch of lows stuck together that could all get taken out at once, we now have a bunch of lower highs all close together and if the bulls can get another push up, would be watching for them all to get taken out together. Shorts will have stops at these levels just as the longs did down at the lows. Happy Trading! Enjoy the volatility! Just My 2 Sats!
COINBASE:BTCUSD
by My2Sats
XRPBTC Primary PredictionGang, I am going to keep experimenting with this pattern. I think we are going to see a correction around 6,450, but that's okay we will still hit our target on the chart. Buy the handle. Set a tight stop loss. 5-10% loss with close to 50% gains. Let's get it gang. ***A 100% drop playing out throughout the rest of the year is still very possible. If you ask me though the bullish risk to reward on the long term is mind blowing. We are in buying territory on the long term. ***Always remember to pay homage to the gang, and keep movin that bread. \w/ ***LTC TIP JAR: MNW7HLttWjNzwEEMsDYpMNEUWi1Kct6vVr
Long
by SheepGangShepherd
Intermediate Trading Strategy - Part 2In part 1 we discussed how to identify a trend and the importance of understanding the time horizon. Please start with that post so that you understand how I identify trends. Rules of Thumb The longer the time frame = the lower the risk The shorter the time frame = the higher the risk The higher the leverage = the higher the risk The lower the leverage = the lower the risk The stronger the market is trending the more comfortable I feel taking on risk, in terms of position size and time frame. When the market is trending and all of the time frames are lining up then I will make some day trades. However, this has not been the case in months and is not something I am actively looking for. Risk:Reward If Real Estate is ‘Location, location, location!’ then in trading it is ‘Risk:reward, risk:reward, risk:reward!’ For me it does not matter if it is shorting Bitcoin' (my favorite asset) or longing a US financial stock (one of my least favorite), if the risk:reward is unbalanced enough towards my favor then I will take a position. If it isn’t a 4:1 bet then I have to be very, very certain in the position. In order to understand this ratio I must write down my stop loss, and profit target(s) beforehand. The stop loss and profit targets are gospel! Changing them ruins the entire position. Lacking the discipline to stick to the stop loss/profit target in the heat of the moment = lacking the ability to actively trade. Stop Losses & Profit Targets Stop losses are usually straightforward. In parabolic markets they can change, but they shouldn’t be much more difficult. One thing that may separate me from other traders is that I like to give my position plenty of room to develop. I hate getting whipsawed on my trades! It is my least favorite feeling and one that has taught me many lessons. I am extremely patient and cautious with my entries. I wait until I am very confident in my position and therefore I am comfortable giving it plenty of room to develop. I set it at a level where I know I will not want to adjust it if the market is moving against me. In fact I would probably do well taking the other side of the trade, a/k/a ‘flipping my position’ as soon as my stop loss is triggered. However I have a strict no re entry rule for a minimum of 24 hours after getting stopped out. In bull markets I set it slightly under the prior low. I will use the weekly chart by default and then zoom in to see if I feel comfortable setting it a little tighter. In bear markets I set it slightly above the prior high. This is usually illustrated by ‘Bill Williams Fractals’. I will trail my stop loss once a new high/low is established. If the market has entered a phase 3 hyperwave, as defined by Tyler Jenks, then I will use the Parabolic SAR' instead of Bill Williams Fractals. On the weekly chart I will use the previous SAR' as my stop and trail it as soon as a new one is printed. Or if I am using the daily chart I will set it two SAR’s behind and move it up one each time a new SAR is printed. In the part 3 we will delve into profit taking.
Education
by Sawcruhteez
7