Trading Tip - Which Type Of Stop Loss Is Better - Dollar Based or Volatility Based? Grab the code and workspace described in this video, get a free mini S&P algo strategy and other helpful trading info:
(Code will be sent to all free subscribers March 15, 2020)
When I started algo trading, I was repeatedly told "always use a volatility based stop loss."
"Avoid dollar stops," all the experts said. I took it as an absolute truth.
Then one day I started "cheating" by using dollar based stops in my algo trading. I was shocked at what I found.
Maybe some market adages (like “never use dollars stops”) aren’t all they are cracked up to be…
As a market researcher and trader, don’t you owe it to yourself to investigate?
Here is a video breakdown of dollar based and ATR stops, along with a neat way to possibly improve ATR stops.
To read the accompanying article, just visit:
Your Trading Guide: Kevin Davey has been algo trading futures for over 25 years, and is currently a full time trader. He is a 3 time international futures trading contest trophy winner and the author of 4 best selling trading books.
Kevin can be reached via e-mail at kdavey@kjtradingsystems.com.

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