Hi all.
I was wondering if anyone could help me out here.
I trade using market profile and some key levels.
I feel like I have pretty good entries, Only problem is I struggle knowing where to put the stop loss.
Should I give the trade 1 - 2 points wiggle room under/over the level? Or is it maybe better to find another level further on to put the stop loss behind - potentially risking more?

For those with any experience in the area, I would love to hear your thoughts. Any information would be very much appreciated.

Thanks in advance.

ironyitz 

Hi all. I was wondering if anyone could help me out here. I trade using market profile and some key levels. I feel like I have pretty good entries, Only problem is I struggle knowing where to put the stop loss. Should I give the trade 1 - 2 points wiggle room under/over the level? Or is it maybe better to find another level further on to put the stop loss behind - potentially risking more? For those with any experience in the area, I would love to hear your thoughts. Any information would be very much appreciated. Thanks in advance.

on the ES for example 1 to 2 points is what a lot of traders want to use . they end up most of the time doing a deep dive into order flow to make that tight stop work. i could not do it. i went to 4 or 5 points for stops and 16 to 20 point targets . it worked better for me. hope it helps

stop loss should only be used for longer term day swing. 2 pts ur joking right? lots use parabolic sar as the stop loss . i rarely use them

ironyitz 

Hi all. I was wondering if anyone could help me out here. I trade using market profile and some key levels. I feel like I have pretty good entries, Only problem is I struggle knowing where to put the stop loss. Should I give the trade 1 - 2 points wiggle room under/over the level? Or is it maybe better to find another level further on to put the stop loss behind - potentially risking more? For those with any experience in the area, I would love to hear your thoughts. Any information would be very much appreciated. Thanks in advance.

Hi @ironyitz, I think that if the market is very liquid you can put your stop even tighter than that. For me if the market get "close" to the level I prefer to get out, because if the level is significant I prefer to get out before it breaks it.
If market breaks a significant level there will be hundreds of stops triggered and I would get out with slippage.

For sake of simplicity let's make and example. LEt's say NQ (nasdaq) is trading at 13050 and I think it might rally to 13200, so I enter at market at 13050 and my stop should be at 13000 which is a nice psycological level.... I will put my stop at 13004 and not at 12998 because if market breaks 13000 it will probably go to 12980 just for the presence of stops. If market get close to 13000 I think that it need to test 13000 so I get out before it gets there.
I know people say to do exactly the opposite: "don't move your stop" "accept to be stopped out etc"... to me it simply doesn't work, if I enter at 13050 with a nice timing market will not go against me 50 points, it will just rally and rally.

This is how I do it, but do your own research.