How much pip stop loss is good?

[alnat]

Ideal StopLoss and TakeProfit depends on your trading strategy and enrty point. If you trading is automatic use Metatrader optimization or use Wealthlab for example. If you trade manualy you can optimize SL and TP using TradeSimOpt.

 

[Ary Barroso]

It is necessarily not how much stop loss is good but how good and strong you are at maintaining the stop loss when doing manual trading.

Basically, traders need to set the SL area according to the position of support/resistant levels!

 

[Longing]

Contrary to the belief, if there is one, the distance will vary every time - that's the challenge. If the mkt can get to the stop, naturally it will. A lot of experience with the pair or any vehicle for that matter is the real advice you should take.

 

[btseen]

It all depends on your trading size and looking into resistance/support level. As a scalper, I usually go for somewhere near 15-20 pips

 

[Zack King]

i trade relatively low-medium trade sizes. would say 20 pips for myself

 

[Zack King]

Basically, traders need to set the SL area according to the position of support/resistant levels!

yes well said, maybe check some youtube vids on s/r if you are not entirely up to speed with this subject- vERY important.

 

[CryptoX]

Use a stop loss based on volatility and setup. Scalping usually needs 10 to 15 pips, day trading 20 to 40 pips, and swing trading 50 plus pips. Never use random numbers. Keep risk small and place the stop where your trade idea becomes invalid, not where emotions feel comfortable.

 

[Zerologic]

The ideal stop-loss distance depends on each trader's individual policy, but rational traders typically consider position size and risk tolerance, along with support or resistance areas, as a reference for placing a stop-loss. A wide stop-loss allows for price fluctuations, but the potential risk is greater. A narrow stop-loss allows for less price fluctuations, technically lowering the risk but increasing the risk of being hit by a stop-loss.

 

[fargana]

I don’t think there is one good pip number for stop loss, because 20 pips can be tight on one pair and too wide on another. I prefer to put the stop where my setup is wrong, then adjust lot size so the money risk stays small

 

[paulakinyokun]

this is the bit i still struggle with. I would love to hear how people actually figured it out

 

[auvoriaprime]

i dont think there is one good pip number for stop loss. 20 pips can be too much on one setup and too tight on another. better way imo is first decide how much % you are willing to risk, then place the stop where the trade idea is actually wrong, like below/above structure.

if the stop is bigger than you can afford, the issue is usually lot size, not the stop. smaller position can make a wider and more logical SL possible.

 

[fargana]

There isn’t really a “good” fixed pip number. A 20 pip stop can be perfect on one pair and terrible on another depending on volatility and timeframe. Better to define where the setup is wrong first, then size the position around that risk

 

[rmufti68]

100%. Stop where the setup is invalid, then size for the risk. Pips just change with pair and timeframe.

 

[fargana]

fixed pip SL is the wrong way to think about it. A 15 pip stop on EUR/USD M5 and a 15 pip stop on GBP/JPY H1 are completely different trades. I’d set the stop where the setup is invalidated first, then reduce lot size if that stop makes the money risk too high