How to set up moving stop loss and stop profit
1 thought on “How to set up moving stop loss and stop profit”
Leave a Comment
You must be logged in to post a comment.
How to set up moving stop loss and stop profit
You must be logged in to post a comment.
1. Capital and stop loss method: This is the simplest method of moving stop loss. When the price quickly moves in the direction of favorable to traders, immediately adjust the initial stop loss level and move the stop loss price upwards upward. By the capital protection price, remember to calculate the two -way trading costs here. This method is very suitable for short -term operations.
. The fixed amplitude stop loss method: The fixed amplitude adjustment is to increase the stop loss position after obtaining a certain amount of profit. For example, each profit of 5%will be moved by 3% Lock some profits.
. The moving moving average stop loss method: This method is to use the moving moving average as the stop loss point. Traders of short, medium, and long -line can choose the corresponding cycle moving average as the stop loss point. 5th or 10th moving average. In addition, the stop loss effect of the EMA and SMA moving average is generally better than MA. MACD red pillars can also decline as a good stop loss point. It is worth noting that the stop loss point is not set directly on the moving moving average, but should be set at the level of slightly deviating from the moving average. The purpose is to leave some room for the average line.
. The stop loss method of the Bollinger channel: In the upward trend, the central axis of the Bollinger channel can be used as the stop loss point, or the Bollinger bandwidth can be reduced as the stop loss point.
V. Polarization line stop loss method: In the upward trend, especially when the varieties that have accumulated a certain accumulated increase entered the final crazy acceleration rising, the parabolic SAR indicator is an important stop loss indicator.
Munctional stop loss strategy based on the ATR index: The ATR indicator (average real volatility average) can effectively help traders predict the possible volatility of prices in the future, which is very helpful for setting up stop loss or profit -making targets.
The logic of setting moving stop loss by using ATR indicators is very simple. First select a reasonable start price, and then add a certain amount of ATR every day to get a mobile stop loss point. The stop loss point obtained according to this method can not only continue to move up with time, but also adapt to market volatility.
[Extended information]
The mobile stop loss strategy based on the ATR index: one is the "chandelier stop loss method"; but the yoyo stop loss method. Both strategies can be simply understood as "moving stop loss price = price -n*atr" to obtain a mobile stop loss bit. The former is to choose the highest price after admission (the highest closing price) to calculate the moving stop loss point, while the latter is to choose the closing price of the previous trading day to calculate. N or 3 in the formula of the formula.