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1.3% Fixed Stop Loss and Nightly Patterns performance

December 1, 2015

As I described in the previous article, implementing one simple fixed stop loss of 1.3% would results in strongly higher performance.

13 less trades would not have been stopped out using this fixed stop loss instead of the more traditional volatility adjusted one.

Only 3 trades would have been stopped out of 244 nightly trades (1.23% of trades) (both long and short trades).

Considering all nights (only long) above 200 SMA, the frequency of trade stopped out was 1.29%.

The two frequency parameters are equal.

I attached the hypothetical results sheet of Nightly Patterns that shows about $40,000 of more profit (trading 10 contracts) than the usual ATR5 based stop loss approach.

1.3% fixed stop loss is the one I am using for the future.


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  1. Brian permalink

    Do you provide exact entries and stopS with the paid subscriptions?


    • Hello Brian,
      When the rules I write on the alert mail triggers, the trade is entered 2 minutes before the close all the time.
      Now, I am using a large fixed stop loss (1.3% from the entry price) instead the ATR based one. Exit all the times 2 minutes before the open, if not stopped.
      Some traders do use take profit orders, but I prefer to let profits run.
      If you have any further questions, I’ll be glad to answer.


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