Get started

Stoploss

BTCUSDT Long Idea with Take ProfitsI have placed this long on Binance Futures - On the 4hr/Daily timeline, one can draw a downwards channel that Bitcoin has been ranging in for the last 4 weeks. Past week it's been in the upper half, and the 2nd to last 4hour candle had a big bounce off the bottom region to close on the median line. To me, that implied strong bullish momentum, albeit it still closed as a bearish candle. It was followed by a bullish candle, not as powerful as the first, but still with an average amount of volume for the past 20 4hr candles. This could easily turn down and continue further to 37700, hence I only risked 1% instead of my usual 2-3%, but seeing as the fall down from the upper region of the channel down to the middle stemmed from big news and extended by liquidations of futures and other derivatives, I believe that people will be buying up this discounted BTC in the coming couple days. Hence, the long TP 4. TPs 1 and 2 - indicated by the purple lines - stem from my bias towards the upside in the short run. Even if the overall trajectory is down, I feel the short-run (couple days) is upwards. The Adam and Eve pattern on the 15 min is a bullish sign, the neck of which we broke with strong bullish candles. TP 1 and 2 are at basic resistance zones, with TP2 being just below the technical target for the Adam and Eve pattern. TP2 is also just before the 50% retracement of the Fib taken from 19th September (before the massive drop) to the trough from 12 hours ago. Another sign we could reach TP2 in the short run without too many problems from the technical perspective. With TP2 being touched, that would take out a total of 75% of my position; only 25% will be left to ride out to my TP3 and 4, or hit a SL that I will move to break even when price hits TP1, or to TP1 when it hits TP2.
Long
by afatuliaj
The logic of "sell half keep half" (Forex)Both holding & not holding don't make sense. Definitions: - Holding = try to hit "homeruns" every time - Not holding = snatching profits at target (not before, that's just being a huge noob) Assume winners 5 times bigger than losers on average: 5R. And the winrate is of 20%. So that's a PF of 1.25, all good. To keep it simple there is no trailing until target. Risking 0.5% per trade you'll never be down more than 10%. Once at target if you move the stop to 1R (-4), 12% of the time the price will go to 45R. So risk 4 to make 40, or 1 to make 10. With a winrate of 12%. PF = 1.36. But if you do hold and trail well... 12% of 20% is 2.4% of total. 80% will be losers (-1R), 17.6% will be +1R, and only 2.4% will be (huge) winners. In other words: Risking 0.5% per trade, by the time you get that big winner (+22.5%) you will be down 15, 25, maybe 50% on a bad luck streak, or more. 22.5% is just enough to get to breakeven after an 18% drawdown. Compared to just lose 4 times (down to 98%) then win once 2.5% (up to 100.45%) Even after a 10% drawdown (an unlucky >20 losses in a row) get a few 5R's and you quickly get back to zero. Holding just makes little sense, and there is no margin for error. But at the same time it's stupid to ignore these big wins. So here is the solution: Sell half, keep half. (Or any other fraction). Selling half at target allows to smooth the returns. If they are too volatile it just won't work out. And keeping half first with a wide stop then maybe not as much, allows to catch the "big ones". This makes most sense even if "on paper" some will say "oh well you should go for the big ones if the odds are in your favor" lol sorry but it's a bit more complicated than this. More generally with Forex I think that any risk to reward under 1 to 2 is bad as is anything above 1 to 10. Can aim for the moon, but not all the time. The "sell half keep half" concept is the best compromise. Adding to winner at some point is too dangerous, it doesn't work, it's just greed. Adding to winners is another subject entirely and anyway there is nothing as a "just do this". It all must be researched and well thought. With this sell half concept you're securing 2.5 + 1.25 = 3.75 / 5R so that's 75% of the profit. Then risking 25% of profit to catch some of these massive winners is I think the smart move here. Profit is secured, to push this a bit further you might have thought of this already: secure enough profit to breakeven (on 20% winrate secure 4/5 R) and "go double or nothing" on the extra (1R). So it's as if in a way these big winners are "free". Risking 1R with 50% retracement means you're leaving 2R in or 2/5 = 40%. Pretty good. And then the account I showed turns to this: Isn't this the best? Sure you'll "only" be in the huge wins with maybe 1/3 of the normal size but it's how it is. This is not gambling. Really, there is no other choice in my opinion. Sort of go nowhere for a while, then boom get a big winner, account jumps up, then go nowhere for a while, etc. The risk all "double or nothing" is actually stupid even if "on paper" you are risking less than you stand to make. And constantly closing at target is just bad and leaving some profit on the table. This does not apply to stocks (sometimes it does, probably). To be honest with stocks you're better off holding everything and getting these zigzags and all so you always have (balanced out) losses ready to be declared, and the huge winners never ever getting closed.
Education
by MrRenev
17
BTC Ultimate FLAG/TRIANGLE!Money Makers! BTC has had a very strong rejection and is now looking to aim lower to find the next MAJOR support before continuing higher. On the weekly TF shown I've mapped where I think BTC should retest in the upcoming weeks. At this support is where I would consider going LONG. There is another support on the way down, which is around 40k. Let's keep our eyes on these areas and see how the market reacts. Love it or hate it, hit that thumbs up and share your thoughts! Don't trade with what you're not willing to lose. Safe Trading Calculate Your Risk/Reward & Collect! This is not financial advice. Simplicity Wins
BITFINEX:BTCUSDShort
by rnaofs
ETH/BTC triangle and breakout ideaTimeline: sep 1 ETHUSD is pumping from 3400 sep 3 ETHUSD hits 4k and stalls sep 5 BTCUSD picks up the pace while ETHUSD still moves sideways sep 7 BTCUSD and ETHUSD rolls over to the downside and flash crashes to 43k and 3k respectively. sep 8 BTCUSD retests 45k as support and moves sideways until today. ETHUSD retests 3.2k and moves sideways during this period the ETHBTC pair has attempted to exceed 0.08, however due to BTCUSD sudden chase, and the following flash crash, it has corrected into a symmetrical triangle ranging from 0.08 to 0.072 ETHBTC. the resistance and support lines of the symmetrical triangles have been tested multiple time, and a breakout or breakdown could lead to a quick move to either 0.08 or 0.072 respectively. a swing long could be entered if the price hits the lower green line, with a stoploss at the lower red line, while a swing short could be entered if the price hits the upper green line with a stoploss at the upper red line until the price breaks the red lines. after the price breaks the red lines, a breakout long could be made at the upper red line, with stop loss at the upper green line, while a breakout short could be made at the lower red line with stop loss at the lower green line.
by Transparent10Xleveragetrades
BNBUSD UPTREND RALLY#BNBUSD UPTREND ANALYSIS i think if the bulls continue with the buying power, it can grow to the next level and after that it can grow again after consistency of price above the retest level. - My Pivot HL is telling me that there will be another pump very soon. - BNB is by far one of the most bullish altcoin out there! - For expected duration of the trade, probability, stop loss, profit target, entry price and risk to reward ratio ( RRR ) - 5x Parallel channel can act as a support / resistance in the future. - If you want to see more of these ideas, hit "Like" & "Follow"
BINANCE:BNBUSD
by GerradFletcher
5
What the good price to buy 1inch?I used Fibonacci Retracement to find a good buy if the triangle broke up. Hope we will have reaction on price. Good buy is the backrest of 0.5 zone with the daily support 4.4858$ Target is the last peaks 5.8227$ If you like adventure so you can buy now and set SL when candles closed below 3.618$ (This is the strong daily support) Anything that doesn't make sense, please give me a comment. Please motivate me to develop myself and help someone needed. Don't forget click like, it's a hug for me. Thanks you!
Long
by BMynameX
US30 --- ALWAYS USE A STOPLOSS************************************** Market Structure Alignment DOGECOIN M = b W = b D = b H4 = br H1 = br M15 = M5 = M1 = ************************************** BIASES: BB = Bullish BIAS BRB = Bearish BIAS **************************************** CODES: b = Bullish bg = Bullish Range br = Bearish brg = Bearish Range **************************************** Bimb = Buyers IMBalance Simb = Sellers IMBalance **************************************** Boms = Break of Market Structure Bboms = Bullish Break of Market Structure Brboms = Bearish Break of Market Structure **************************************** DZ = DemandZONE SZ =SupplyZONE ************************************ H = High HH = HigherHIGH HL = HigherLOW L = Lower LL = Lowbrow LH = LowerHIGH ************************************* POI = Point Of Interest IMB = Imbalance IC = Institutional Candle MIT = Mitigation ************************************* Black = Monthly Red = Weekly Green = Daily Yellow = H4 SkyBlue = H1 NavyBlue = M15 Pink = M5 Purple = M1 Orange = Alerts ************************************
OANDA:US30USD
by N934rex
How to place stop loss like a Pro TraderStop loss placement is perhaps not the most glamorous of trading topics to discuss, but it is a critically important one. If you do not know how to properly place your stop loss, you will be in for a very, very rough ride as you trade the markets. Essentially, for a trader, everything hinges on proper stop loss placement and risk management. If you understand these two aspects of trading and how to approach them properly, making consistent money in the market will become much, much easier for you. Note : This lesson is based on higher time frame charts and the concepts are not applicable to very low time frames which is a different world of trading and not something I do or recommend so I can’t comment on it. The theory behind placing stop losses like a pro trader The first thing to understand and drill into your head about stop loss placement is that you should NEVER place a stop loss based on some random amount of pips. I know a lot of traders do this because I get emails from traders telling me they use “20 pip stops” or “50 pip stops”, etc. etc. This is NOT proper stop loss placement and it is definitely NOT how professional traders place their stop losses… A stop loss should typically be based on a level in the market. Price should have to breach a level to ‘prove’ your trade wrong. You want to see price invalidate your view by giving you fact-based evidence you are wrong, that evidence comes in the form of the most logical nearby level of support or resistance being breached. You need to take into account the context of the market you are trading and determine what level price would have to break through before your original view doesn’t make technical sense anymore. Let’s take a look at two examples to make this clearer… The first example below shows a random pip amount stop loss placement, the second example shows a stop loss placed within the context of the market and nearby levels. Make note of the end results of both trades… Notice in the chart below the trader placed his stop loss at an arbitrary 50 pip distance from entry. Traders typically do this because they don’t understand how to place stops properly and also because they want to trade a bigger position size. This is wrong. You need a logic / chart-based reason to place a stop loss, not just a random pip distance or a pip distance that will allow you to trade the size you want. Notice this trader would have been stopped out for a loss just before the market shot higher, without them on board… In the next chart, we can see how this trade worked out for the trader who knew how to place stops properly / like a pro and who wasn’t placing his stop arbitrarily or based on greed (to trade a bigger size). Notice the stop loss was placed beyond the key support level and beyond the pin bar low, giving the trade good space to work out but also being placed at a point that would logically invalidate the trade if price moved beyond it…. Let’s briefly go over typical stop loss placement on two price action setups I teach; the pin bar signal and the inside bar signal . You will notice, I used a risk reward ratio of 2 to 1 on each trade, this is my ‘default’ risk reward. In other words, I always start any trade by seeing if a 2 to 1 (or more) risk reward is realistically possible given the market structure and context the pattern formed within. For expanded examples, you can reach out to me for my lesson on how to place stops and targets like a pro . Note: Be aware of the average volatility over the last 7 to 10 days of the market you’re trading. You want your stop at least half of ATR (average true range) if not more or you will get stopped out due to noise. The Average True Range is a tool we can use to see average market volatility over XYZ days. It is a good tool to utilize for stop loss placement when no nearby key levels are present. To learn how to apply and use the ATR tool more in-depth, you can reach out to me for my article on the average true range. The example below shows how to use the ATR for stop loss placement and how it can keep you in a trade despite initial choppy conditions after the pattern… IMPORTANT STOP LOSS PLACEMENT TIPS It’s important to consider reward or target potential before taking any trade. You base the potential target of a trade on the stop loss distance. If the stop has to be too wide in order for the trade to have enough space to potentially work out, and the risk reward potential doesn’t stack up, then it’s usually not the best idea to take the trade. Risk reward and position sizing are intimately related to stop loss placement obviously, and crucial topics in their own right. But, we are focusing here in this lesson just on stops, be aware that stops are paramount and take precedence over targets, in a way, stops are a qualifier for the target and overall risk reward and will effectively help you filter trades you should take and should not. It is important to note that stops should always remain constant and can’t be widened, however targets can be widened, stops should only ever be tightened and moved into break even and trailed, make sure that’s concrete in your trading plan. Stops are crucial to managing risk because once we find the stop loss placement we can then determine our position size on the trade and then we know ahead of time the cost and risks of the trade. As part of our trading business plan, stops are a cost of doing business as a trader, they are also there to force us to get out if we are wrong on a trade, despite our emotional bias towards staying in a trade, which in the end can cost us dearly if we were to hang onto a loser until we blew out our account balance. CONCLUSION A properly placed stop loss is truly the starting point of a successful trade. It allows us to proceed with calculating reward targets on trades and position size, effectively allowing us to execute our predetermined trading edge with a clear mental state and discipline. Traders who do not focus on stop loss placement first or put a lot of importance on doing it right, are doomed to fail and blow out their accounts. I hope today’s lesson has given you a little ‘snapshot’ into how I approach stop loss placement. My trading course and members’ area will further educate you on how I place stop losses and how I incorporate stop loss placement into my overall trading strategy. To learn more, you can reach out to me privately.
Education
by Skuchies_CryptoKing
TBLT A Lesson Learned Last week around this same time I posted an idea on TBLT asking how traders get trapped in these gaps . I had just started to study gaps so this actually played out perfectly and answered my own question. I wanted to know how traders get trapped in these situations where you go into the weekend confident in your decision, only to watch everything come crashing down on you Monday morning. The way this played out couldn't have been more perfect. TBLT is considered a penny stock for those of you who are also new to the market, and not totally hip on your terminology yet. Any stock share with a price of $10.00 and below is considered by most professional traders to fall under the penny stock designation. Penny stocks are considered extremely volatile in the trading community for many reasons; one example being that the low Market Cap of these companies, and the low share price make these prime candidates for pump and dump schemes. Penny Stocks are also at higher risk of having trading halted by regulators during an active Market session. This can lead to substantial losses. There are plenty of other reasons that make them a high risk, but these two are most important in my opinion. Now that you have the back story, I'll make this part short and sweet. What went wrong was the perfect storm of me dabbling in an extremely volatile asset class, not following my trading plan by setting a stop loss to mitigate my risk if things went in the opposite direction; which is exactly what happened, and buying so close to an Earnings report that ended up being less than stellar. ( That last part about the earnings report was actually a surprise to me. They are a small company, but they had great numbers with their online sales, and the tools are decent. I actually use some of them ). Anyway, it's all relevant to what led me to enter the trade, so that's why it's here. I used multi timeframe analysis of the Daily & 1 hour time frames for this particular trade. I entered using the hourly candlestick pattern and bought on the open of the one hour candle. I apologize for the unprofessional graphics, but I'm limited to an Android phone for all of this. I will see if I can edit this on a PC when I get the chance so I can add the other graphic. I have the Daily & 1 hour charts marked up, but I could only capture screenshots due to being limited to my mobile device. Back to business : As the old saying goes ; A picture tells a thousand words. My Swing Trade has now turned into a longer term hold tying up capital and leaving me in the red for the time being. I hope this helps other new traders understand that technical analysis is an extremely deep subject, and that sticking to your plan is of the utmost importance. If I had done this properly , I could be buying the dip, or moving on to another trade instead of holding a bag. Leave a comment below, and let me know what you think about my explanation. Let me know if this has ever happened to you? Thankfully I did stick to only investing a small percentage of capital per trade, so it's not all bad news. *Not financial advice. For educational and entertainment purposes only.
TEducation
by bm8ter
3
🌐 How not to be stuck in your position?🌐 How not to be stuck in your position? SIGNAL + TIMING = SUCCESS You asked me how not to be stuck in one long-term, seemingly losing position and how not to miss opportunities. You have to consider at least two dimensions of timing: zone and scale. What is a zone? - The time-zone of my signals is UTC, and so, you have to translate. What is the scale? - The scale of my signals varies from 1-minute to 3-month, and thus, you have the following kinds of positions. Top traders have at least three kinds of positions: base, intra-day, and long-term. What is your base position? - It is the base currency within which you feel most comfortable holding most of your capital, and it is usually USDT or BTC. What are the guidelines for intra-day and long-term positions? - Professionals often put up to 5% of their base per intra-day position, and they rarely use more than 25% overall of their base at one moment. - When you make a profit on an intra-day position, you put a part of it (for example, 50% of the profit) into your long-term trade, and you return the rest to the base. - This way, you manage your risks, and both your intra-day positions and long-term position will grow. +1 So, why can't an automated system simply do it for you? You have got your accounts, your assets, and your responsibility. Exchanges do not allow a bot to read how much capital you have in total, nor how your investment breaks down to different assets and accounts. Only you have got this information, and only you hold the right to manage your account.
BITSTAMP:BTCUSDEducation
by Elysian_Mind
1
Mind the Indian Stock Market!The Indian Market has seen some an insane frenzy of bullishness in recent weeks. Favourable PMI numbers and overjoy about expanding economies have led the gamblers to go north like nobody's business in the last few days. Errh.. they forgot about supply chain bottlenecks. 🙄 The interesting thing about this position is what it 'makes'' you think - or is that 'feel'? I don't know what's going to happen. Let me say that again, I don't know what's going to happen. The reality is that the Indian economy is in dire straits at the grass roots. The further excitement travels from reality, the greater is the eventual pain. For new traders, have you noticed that when you get stopped out price tends to reverse just a few points after? Then you shout expletives when price follows your original direction and you get left behind. It's soooo infuriating! 😠👿 Why? Price has a higher probability of reversal at peaks and troughs on any time frame. The trouble is setting your stop loss with enough elasticity to catch it, whilst avoiding FOMO. This is not advice - it is experience shared. (Mind my brutal disclaimer below). Price usually reverses at a point much greater than we anticipate, even after all the technical analysis. That's been happening a whole lot, especially in the pandemic period. So - positions like this one on the daily Indian charts are very difficult to short. Keep in mind that shorting is always more difficult in Stock indices than going long. The great thing about short-selling indices (around this time) is that if they drop, they have a long way to go. So no rush. Small position sizes with very wide affordable stop losses are one answer to the ridiculous volatility. When a deep trend develops on the 15 to 30 min time frame that's the one to watch. I don't fight a daily time frame! Both the Indian and German markets have recently decided to track the USTECH100. That's pretty dangerous gambling. How? When the crash (>50% correction) starts we know it's going to start with TECH. P/E ratios are wild in the tech sector, and totally unrealistic. But of course it depends on which guru you believe. Some recall what happened in the Dotcom era. Some have forgotten. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
I
by Captain_Walker
3
How to Stay in a Risk Defined Trade: AMZNNASDAQ:AMZN tanked on earnings down to a Support level I liked for a long trade. I talked about the Support level and drew up the trade during my Livestream last Friday. This morning's price action breached the Earnings low and I was made aware by an alert. It did not trigger my Stop Loss though. A lot of new traders may try to play bottoms such as this but not have clearly defined risk. This can prove disastrous if price does break the level and continues to move against the trade. One way that a trader can define their risk is to use a multiple of Average True Range (ATR). ATR is a measure of the average range of a user defined number of bars in history. It is a great tool for assessing the volatility of the instrument being traded as it will be relative and responsive to the specific instrument. An instrument that moves in a tight range for a period of time will have a low ATR and an instrument that moves a lot will have a high ATR. If the instrument experiences a price movement that exceeds the recent ATR it can often signal a significant change. Using ATR for setting Stop Losses defines the risk at the start of the trade so that the position size can be calculated and standardized. Rules such as this are important for standardizing a strategy and making it consistently profitable. In the example of Amazon I used a Stop Loss that was set 65% of ATR below the Earnings Low. This allowed price to do a false breakout of the low but left enough space for the trade to remain active.
NASDAQ:AMZNLong
by norok
1