How Do You Analyze/Interpret a Good Stop Loss Setting Percent?

How Do You Trade a Good StopLoss Setting Percent?

Strategies of Setting Stop Loss In Trading

Forex traders using a FX strategy must have mathematical calculations which calculate where the Stop-Loss order should be placed.

A trader also can place a stop-loss in accordance to the indicators used to set these stop loss orders.

Certain indicators use mathematical formulas to calculate where the stop losses should be set so as to provide an optimal exit point.

These indicators can be used as the basis for setting these stop loss orders.

Forex traders also place these stoploss order orders according to a predetermined risk : reward ratio. This strategy of setting stoploss orders depends upon certain mathematical formulas. For example, a ratio of 20 pips stop loss can be used by a fx trader if the trade transaction position has potential to earn 40 pips in profit: this is a risk : reward ratio of 2:1

Other traders just use a predetermined percent of their total equity trading balance.

To set a stop loss it's better to use one of the following % based methods:

Setting Stop Loss based on Percentage of Account Balance

This stop loss order setting method is based on the % of account balance that the trader is willing to risk.

If one is willing to risk 2% of account balance then the trader determines how far he will set the order level based on the open trade size which he has bought or sold.

How Do I Set Stop Losses depending on the Account Balance Percent Method

How Do You Analyze/Interpret Good Stop Loss Setting Percent?

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How Do You Analyze/Interpret a Good Stop Loss Setting Percent?

How Do You Trade a Good StopLoss Setting Percent?

Strategies of Setting Stop Loss In Trading

Setting Stop Loss based on Percentage of Account Balance