Set SL/TP at what distance

• 03/15/2022 at 2:15 PM #190014
  phoentzs

  I have a basic question… how exactly do you define your SL/TP? You can have that beautifully calculated in the back test… for example SL 2% and TP 3%… which may result in a beautiful curve with trailing stop, but is probably not the truth. Because many, many entries are simply skipped and the whole thing will not work like this in the future. Personally, I try to calculate TP/SL in such a way that I have as many trades as possible in the backtest and as few entries as possible are skipped.
  But are there other options? Easier? With a code other than simply SL/TP in percent?

  

  phoentzs

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  03/22/2022 at 5:06 PM #190328
  ZeroCafeine

  phoentzs wrote:

  phoentzs

  for me calculate the SL like you said it’s no make any sense, because it’s depends the market, depends the TF, depends the price of share, depend the leverage are you using and depends your money managment, so for exemple what is the rule of your money managment, the 2and 6% rule or wich one ?

  

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  03/24/2022 at 7:35 PM #190433
  GraHal

  phoentzs wrote:

  as many trades as possible in the backtest and as few entries as possible are skipped.

  How do you ensure as few entries as possible are skipped?

  By skipped do you mean Rejected … which of course none are skipped / Rejected in backtest.

  

  GraHal

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  03/24/2022 at 8:18 PM #190437
  phoentzs

  No, by that I mean valid entry conditions. For example, if you set a TP of 2% in the backtest, there may still be several valid entry conditions between entry and TP. So you calculate the backtest nicely, but under certain circumstances you can end up in over-optimization. So I try to set the TP as tight as possible, actually never more than 1%, or a tight trailing stop. In the case of indices, it also makes sense to exit the market in the evening when doing a short trade. Markets often recover overnight. Just my opinion, I’m happy to take any other suggestions. Oh, of course I’m talking about small time units intraday.

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  phoentzs

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