What's a good Stop Loss Oil Trading Order Setting Percentage?

Strategies of Setting Stop Loss Oil Trading Orders In Oil Trading

Traders using a oil strategy must have mathematical calculations that calculate where the Stop Loss Oil Trading Order should be placed.

A trader can also set a stop-loss oil trading order according to the technical indicators used to set these stop loss oil orders.

Certain technical indicators use mathematical equations to calculate where the stop loss oil orders should be set so as to provide an optimal exit point.

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

Traders also place these stop loss oil orders according to a predetermined risk to reward ratio. This method of setting stop loss oil trading orders is dependent upon certain mathematical equations. For example a ratio of 20 pips stop-loss can be used by a trader if the trade has the potential to make 40 pips in profit: this is a risk reward ratio of 2:1

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

To set a stop loss oil trading order it is best to use one of the following percentage based methods:

Setting Stop Loss Oil Trading Order based on Percent of Account Balance

This stop loss setting method is based on the percent of oil trading account balance that the trader is willing to risk when trading.

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

Example:

If a trader has a $10,000 crude oil trading account & is willing to risk 2 %

• If a trader buys 0.1 contract or 0.1 Standard Lots

  1 pip = $1

  Then setting at 2% - 2% StopLoss Oil Trade Order Setting Percentage

  2% is $ 200

  200 /1 = 200 pips

  Stop Loss = 200 pips

• If a trader buys 0.5 contracts or 0.5 Standard Lots

  1 pip = $5

  Then setting at 2% - 2% StopLoss Oil Trade Order Setting Percentage

  2% is $ 200

  200 /5 = 40 pips

  Stop Loss = 40 pips

• If a trader buys 1 contract or 1 Standard Lot

  1 pip = $10

  Then setting stop loss at 2% - 2% Stop Loss Oil Trade Order Setting Percentage

  2% is $ 200

  200 /10 = 20 pips

  Stoploss = 20 pips

How to Set Stop Loss Oil Trading Orders based on the Oil Trading Account Balance Percentage Method - What's good Stop Loss Oil Trading Order Setting Percentage