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A slow day with tight stops which were annoying. We saw trades in GBP, CAD and JPY which worked out but a lack of momentum failed to carry AUD, EUR and CHF prices to their targets. The net result was xx pips profit.
We have tried a number of methods to try and calculate a stop value that works best but no method works best in all market conditions. We have looked at placing the stop halfway between the buy and sell levels, using volatility based stops and trailing stops. We will continue to use the model's stop suggestion but if you want you can place a stop automatically with each trade at 20 - 30 pips from the entry price. Be careful - when trading ranges are narrow, this naive method could place your stops beyond the buy and sell levels and you could end up having a buy AND a sell position in a currency pair at the same time!
