5 Trailing Stop Loss Techniques (Risk Management for Traders)
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- เผยแพร่เมื่อ 15 ก.ค. 2024
- Five techniques you can use to trail your stop-loss rides.
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0:19 Trailing Stop Loss Technique #1
The first technique that I want to share with you is moving average. By now, I think that you should be familiar that moving average is something that you can use to trail you stop-loss, so, for example, let's say that you went long on the break of this highs over here. The market break of this high over here, and you can trail your stop-loss using this moving average. This is the trending period moving average. So you only exit the trade when the price breaks and closes below it.
2:00 Trailing Stop Loss Technique #2
The second technique is the market structure. So for those of you who are price action traders, you can use the structure of the markets to trail your stop-loss. Here is an example, we can see over here, let's say for example, again you long the break out over here, the market hits higher, retraces right. This is the swing-low, which we can reference to set your stop-loss, so your stop-loss won't go below your swing-low. The market makes a new high, makes a new swing-low, this swing-low you can reference your stop-loss, the market makes a new high, retraces - makes a new swing-low, you can reference it as your stop-loss. The market makes a new swing high, and then it retraces, and finally over here, breaks and closes below the swing low over here, where you exit the trade.
3:54 Trailing Stop Loss Technique #3
The third technique I want to share with you is percentage change. This is very straightforward. Very useful for stock traders. This stock: Alibaba, you can see that it made a high of $110 so what it can do is that it can just use a percentage change to trail a stop-loss.
5:00 Trailing Stop Loss Technique #4
The fourth technique I want to share with you is Average True Range. A very powerful way to trail your stop-losses. Well, how it works, is that, ignore this indicator for a while. So by right now, you know what the A-T-R indicator is, its a measurement of volatility in a market. So if you pull out your A-T-R indicator, it will give you a value. So let's say for example the A-T-R indicator currently shows you, let's say 100 pips for euro dollar.
7:20 Trailing Stop Loss Technique #5
And, lastly right, you can use the previous candle high/low to trail your stop-loss. Let me share with you an example, so if you recall bitcoin, it has been moving pretty strongly over the last of, I'll say 2017. You can see that the market went parabolic over here, the range of the candles got larger and larger. So where you could have trailed your stop-losses is that if the price breaks and close below the previous day low, you'll exit the trade.
A quick recap, the first technique I shared with you is to use the moving average to trail a stop-loss. Or you can use market structure referencing from the swing-high and swing-low to trail your stop-loss. You can use percentage change as well right, if the price drops x percent, you exit the trade. You can use the average true range, slash chandelier stop, to trail your stop-loss, which is based on the volatility of the market. And, last but not least, you can trail based on the previous candle high or low, which is very useful when the market has gone parabolic. Okay, so I have come to the end of this video.
If you want to learn more, go down to my website www.tradingwithrayner.com over here at the top, if you want to learn more, for example this video, we focused a lot on exits and trailing stop-loss, if you want to learn about entries, go to my website tradingwithrayner.com, download this guide over here, The Ultimate Guide to Price Action Trading, where you will learn how to better time your entries, and read the price action from the markets. Just click this blue button, and I'll send it to your email address for free! With that said, I have come to the end of this video, any feedback, comment and let me know in the comment section below. If you enjoyed this video hit the like button, subscribe to my TH-cam channel, I would really appreciate it, and I will talk to you soon.
I like it better when I can see you talk. It's difficult without seeing you. IT is great to watch all your videos and educational. Thank you Rayner Teo.
Excellent content especially on Trailing SL with Pros and Cons of each technique. Can't find anywhere else online. Thank you Rayner.
Very helpful for beginners. thank you for sharing!
We often over look the importance of stop lost in trading. Thanks for sharing Rayner.
my pleasure
I watch yr vdo weekly, i love yr teaching
Thank you for all your videos, you’ve helped me a lot. 😎
Thank you so much sir. I appreciate you for keeping things VERY simple. Looking forward to the course soon.
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Hi its me again Rayner thank you for the insights given in the video. Trailing SL can actually be aiding the active stop loss like trailing SL can be seen as a passive SL to help decide whether to continue the position or close the position and tp
Great stuff, Also I wanted to know how exactly the trailing stop loss works, as from which point it trails and whats the distance it keeps from the market price as the price is moving up?
Rayner sir I always liked your videos thanks for these. I suggest you you type what you conclude at end of video so that we can take screenshot of it.pl do reply .
Thank you so much.
📌
gold nuggets. thank you, Rayner.
This was very helpful thanks.
Thankyou so much brother
Hi Rayner- When it comes to the chandelier stop loss indicator, which ATR period would you use? Lets say I want to capture the intermediate term trend on a daily chart? Should I use 4 , 5 or 6 period length?
Keep up the videos. You rock!!
thanks Rayner
Hey Rayner, Thanks for sharing. Trading view provided in india does not have Chandelier Stop.. but it provides SuperTrend, which is also based on ATR * Factor & Length. thanks for sharing gr8 learning videos.
Best trail stop Ive used is the heiken ashi open price, either the current one or previous candle open
Good review....
You the man!
good tips, thx
Very good learnings as always thanks❤🙏 Bro
Awesome dear....very useful
Which of the (5) techniques do you think would be best suited for 2x or 3x leveraged ETF? I'm thinking the previous high/low x 1.5 might be a usable approach.
Nice video. Thanks.
How many pips should be the trailing stop?
Amazing Work Bro! Greetings from Mexico !
Thank you, Oscar Alonso. I appreciate it!
Hi raynor... more often we have gaps in stock markets... can you share your views on gaps... Thanks in advance...
Hello sir I wanna thank you so much for changing my life I take my time to watch all your videos and I am a full time trader now in period of 6 months
Thanks for sharing your video!
I wonder if you've given thought to this strategy: often traders lose money because their stop loss gets hit and then later, the prices cross back up but the trader is no longer in the trade. What if you can implement an automated algo trading strategy where when a stop loss is hit and the trade liquidates, then immediately send a limit order with the same or a similar price that the stop loss executed at? This new limit order can be seen in the Brokerage’s GUI, and the trader can manually cancel it if he wants to.
Thanks in advance for your response :)
good stuff thanks
I only trade crossovers on 4h and daily charts. Exit a trade as soon as the new bar pierces the ma that is above in a downtrend and below in an uptrend. Works very well for me.
Long term is always better than short term
Hey Rainer how do I put my trailing stop loss at something like an SMA, I’m using webull and I don’t think it has an option for that, does the broker you use allow you to do that?
Which strategy of putting a stop loss u found more probable or which one u found working better in long run or have better results ? Plz help 🙏
110-11=109 😂😆 you’re too cute ... greetings from Canada
I'm only human :(
@@tradingwithrayner Love you bro❤ you are the only one i can trust on TH-cam
Thanks again for your help sir
you're welcome!
good introduction video. short and sweet, to the point.
Cheers Short Shark!
Great educational material. It is honest and accurate but needs some improvements.
For example the ATR/Chandelier stoploss method. The multiplier is way too high and it is what is commonly used. Instead of a factor of 5, 1.5 to 3 should have been used.
When using a smaller number during a progressing trend near the end the stoploss will likely be near the low/high for a long/short position as you shown in your high/low stop method or capture the same as the Market structure method.
Finally, the chandelier method as per its creator Charles LeBeau can use an optional setup the ratchet where the stoploss never go back to a lower/higher value preserving any gains.
I challenge you to show price chart with the chandelier method using various multiplier of the ATR.
Keep the good work.
Thanks! I feel smarter after watching this. Keep going sir!
niceee
hello bro, thankyou for sharring. How can i Using trailing stop on mt4 mobile app ? Please help me
Great👍👏👏👏
Love from India... 💕
Thank's Rayner
welcome!
Hello Rayner, when trailing your stop loss do you need to be around your computer to adjust or the system will automatic move? Can you please explains thanks.
The trailing stop "lives" on your broker's system, so you can turn off your computer. Your broker (Fidelity, Ameritrade, etc) will handle it automatically. Trailing stop loss works only during MARKET HOURS: 9:30am-4pm EST.
I have a question to protect a trailing stop loss. I had a trailjng stop loss set at 15%, but there was a huge downward tail that force my stop loss then it jumped back up massively. Is there a way to protect against that?
Good work Brother, keep going, my trading is way too better because of your selflessness
awesome to hear that!
good video
Thank you, Rayner, for sharing very good knowledge on SL. I have a doubt that some time in intraday price comes below the moving average and again jumps to near the high, can you please guide how can I avoid this kind of situation and it not eat my SL, if I am using moving average as my SL. And lots of thank you..for the price action technique.
You can wait for the close before exiting the trade
@@tradingwithrayner okay.. Thank you so much.
Thanks. can one combine two or more of these strategies and what tool can be used to effectively track momentum?
I suggest sticking to 1 trailing stop technique so as not to confuse yourself. Rate of change indicator tracks momentum
Hey hey here is good my friend
Is there a way to use method 5 with the hot key?
Plz explain supertrend indicator
In there five types of traling stop loss system, which is the best you believe?
GOD bless you bro
cheers
Who knew Bitcoin would be 23,000 now. Lol.
Nice video boss
You are great
Thank you, Adrian Kasa. I appreciate it!
my entry point is perfect but exit not perfect. how can i train my mind for trailing stoploss.
Do you swing trade or day trade more?
Ever wonder why almost all brokers DON'T offer an adjustable automatic trailing stop loss setting? Almost as if they want their retail customers to lose their money?
Interesting...
You Are Really #SuperMan 😍♥️♥️💹📊
I'll get killed if someone shoots me though. hah.
No, You Lives Thousands of years.
cz Love from india....❤️❤️❤️🇮🇳🇮🇳
How do you determine your ATR for something like Bitcoin?
Just pull out the ATR indicator and read from it
SMA or EMA?
Why do you use MA instead of EMA ?
Honestly, it doesn't matter. It's ema btw.
You know, right? 😉
You know, right?
20 ma is very inaccurate for trailing
Very good info, would be better if I could understand you, lose info when you talk too fast
Really supportive videos especially for beginners, what is a little annoying is the phrase "Hehe what's up my friends" other than that supper!
And.. lost me at hey, hey, wassup my friends?
First asian with weak math
Good review....