I’ve been experimenting with different stop-loss methods recently and finding mixed results.
ATR makes sense theoretically, but it often results in stops that are too wide for my liking. Support and resistance seem more intuitive, yet they’re a bit subjective.
Curious what techniques are working for you all in today’s market.
Fixed percentage works better for me than any technical method. Keeps losses predictable.
Just test whatever makes you money consistently.
Your risk tolerance matters more than anything. I used to chase perfect setups and risk 4% because the chart looked amazing.
Big mistake. Now I cap it at 1.5% per trade, period. If hitting the nearest support blows past that limit, I skip the trade or hunt for a better entry.
For stops, I stick with obvious swing highs/lows from daily charts. They’re way more reliable than intraday levels. Game changer was tracking what actually kept me profitable over 100+ trades.
Turns out my gut feeling about “too wide” stops was dead wrong. A 60 pip stop at a solid level beats a tight 20 pip stop that gets smoked by regular price action every time.
I stick with support and resistance levels but keep it simple. Price usually respects major levels that jump out on higher timeframes.
The subjectivity thing becomes less of an issue when you focus on the obvious levels. I skip minor support that barely held once or twice.
ATR helps with position sizing when the logical stop feels too wide, but I never set stops based purely on ATR.
Combine chart analysis with solid risk management. Start by finding the closest support or resistance level. If that level would put more than 2% of your account at risk, either shrink your position size or skip the trade entirely. ATR’s useful for checking if your stop makes sense with current volatility, but stick with clear technical levels first. Better to place your stop just under strong support at 1.5 ATR than at 2 ATR in some random weak spot.