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Recommended Stop Loss Strategy


As a general strategy should stop-loss be "n" times the profit-target or the opposite (profit-target being more)?

Some suggest having a big stop-loss (say 3 times the profit-target) so that it is not easily hit

Other camp suggests taking quick small losses so that we are quickly out when the trade setup doesn't work out

Also has trailing stop loss worked better than a profit-target with stop loss? Would you recommend it?

What has worked best in your experience and what do you recommend?

Thanks, Sam

1 response

The stoploss you implement depends on your strategy, your risk appetite, and your time horizon. You can use the research environment to simulate different parameters and their impact on your algo.

Here's a webinar showing how to craft a trading strategy:


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