Different stop losses for longs and shorts
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GraHal – they can’t produce the same results as one only exits at the close of a candle/open of new candle and the other sets an order on the market to close mid candle.
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which is the best way?
This all depends on the strategy in question. I normally test each strategy with a variety of exit methods to evaluate which works better. It is surprising that more often than not waiting for the candle to close is more profitable but I guess that is only if your prediction of market direction was more likely to be right in the first place. Sometimes it can be heartbreaking to see a 1000 pip profit turn into a 800 pip profit when the market suddenly pulls back just before the candle close. But hey ‘a profit is a profit’ is a good philosophy to have!
Obviously waiting for the candle to close can see you open to some big losers if there is suddenly a very long candle in the wrong direction but this is what your emergency SET STOP %LOSS is for.
It costs nothing to try all ways and see what suits your chosen strategy but always be aware of curve fitting the stops to fit the strategy.
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