MightyOne wrote:smartquant wrote:MightyOne wrote:smartquant wrote:MightyOne wrote: It was the 5m range multiplied by 2.5 which is very close to the M15 480 range that I use now.
If I want to scalp then I use M15 range * 0.6666.
No matter what formula you use you want to place your stops based on the volatility of the pair you are trading.
You don't want to use a 15 pip stop with an avrg. range of 26 and lose 16% in 20 minutes.
When you size your position based on volatility then you stand a chance of making consistent returns and minimizing risk when things don't go your way.
+ there is no reason to size your trades so that you will be trading billions in 2 years time because IT IS NOT going to happen.
So calm down, widen your stops (4% risk max), and trade strategically.
I was ready about using 2.5 times the 5min range for stops.
Is this 2.5 times the average range of the last X 5 min bars or simply 2.5 times the range of the last 5 min bar?
Thanks for your input.
It was M5 288 range * 2.5
After getting tired of changing my SL settings every 5m it then was
M5 1,440 range * 2.5
Until I realized that M15 480 range * 1 was almost the same number.
Thanks for your input. I don't know what M5 288 or M5 1,440 mean but I'll search around to learn more.
The average range of 288 or 1,440 five minute bars
Thanks for your response. You've saved me a search.