{"id":17132,"date":"2021-09-21T12:21:57","date_gmt":"2021-09-21T20:21:57","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=17132"},"modified":"2021-09-21T12:23:36","modified_gmt":"2021-09-21T20:23:36","slug":"trailing-stops-to-manage-your-risk-support-and-resistance-levels-9-21-2021","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/trailing-stops-to-manage-your-risk-support-and-resistance-levels-9-21-2021\/","title":{"rendered":"Using Trailing Stops to Manage your Risk &#038; Support and Resistance Levels 9.21.2021"},"content":{"rendered":"<p>Dear Traders,<\/p>\n<div style=\"text-align: center;\">\n<div>Get Real Time updates and\u00a0more on our private FB group!<\/div>\n<div><a href=\"http:\/\/r20.rs6.net\/tn.jsp?f=001KRg6On04gjknOfysn89cEhkyXgAxXigZc1_AdekBblRz4Cwp2yofkpGH8rpms9Q30D0wjhFS1q8yG11pQf1KRy2bpIyH4uwMgzWcI-wb74TdqgA-DQitbpTeoWmib8qwdH8ve86kM_6EWihst10TitotvFRrtw2C0HgnNGJLkXUXb6ec7AaQGNxU6EuLQxHI&amp;c=&amp;ch=\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/business.facebook.com\/groups\/1105191589938254\/<\/a><\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<div><img decoding=\"async\" class=\"global_separator\" title=\"Separator\" src=\"\/css\/images\/global\/separator_620.png\" alt=\"Separator\" \/><\/div>\n<div style=\"text-align: center;\"><\/div>\n<div style=\"text-align: center;\">\n<div align=\"center\">\n<div align=\"center\">\n<div>\n<div>\n<div>\n<div>\n<div><a href=\"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/suggestions-on-trading-during-fomc-days-support-and-resistance-levels-6-16-2021\/\">FOMC tomorrow<\/a>. Do your homework, look at price action during the last few FOMCs.<\/div>\n<div><\/div>\n<div>Also we will have a LIVE WEBINAR with live price action post FOMC\u00a0and see in real time what type of information price action and order flow provide.\u00a0<a href=\"https:\/\/register.gotowebinar.com\/register\/7333185522435726864\" target=\"_blank\" rel=\"noopener noreferrer\">Register here.<\/a><\/div>\n<div><\/div>\n<div><\/div>\n<h1>A Trailing stop Tweak\u00a0\u00a0\u00a0by John Thorpe, Senior Broker:<\/h1>\n<div><\/div>\n<div>When traders decide to deploy trailing stops, they may decide to take a look at avg truer range to determine volatility of the market so they have a better gauge of how much to risk on each trade and how likely, if they are correct about the direction, will they be to successfully set the trailing distance. Tweak your stops to reduce the risk to your Net Liquidating Value.<\/div>\n<div><\/div>\n<div>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Whatever indicator or set of indicators you like to use to determine how many points the market must travel before your stop automatically modifies and moves to your new \u201cProtection Level\u201d, I think all traders agree when this happens, we have a winning trade on the books., Typically the worst we will get filled when the market does change direction, with a little slippage is a trade that finishes in the black!<\/div>\n<div><\/div>\n<div>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0What happens when the stop doesn\u2019t trail, a hard stop is elected the market takes the position out, with a little slippage, below our breakeven? The trade ends in the\u00a0red.<\/div>\n<div><\/div>\n<div>Whether you trail or use a hard stop,<a href=\"https:\/\/www.cannontrading.com\/community\/newsletter\/Tight-Stops-or-Wide-Stops-for-Futures-trading-Corn-Futures#one\">\u00a0stops are part of risk management and in my opinion<\/a>, essential to long range trading success: use stops or trailing stops.\u00a0\u00a0If the stop never trails, the trade will end with a predetermined loss,(less slippage and fees) , Some people like to set stops after they enter the market, (some say they do but rarely will). I do.<\/div>\n<div><\/div>\n<div>The importance of using stops can not be understated. What I do once I have determined how many ticks I will use for my trailer, is to place the Trailing stop LESS THAN my hard coded distance E.g. hard coded trailing distance is 20, I will place the stop at 12 or 14. That way, if the market modifies the stop at least once, the trade will do better than break even by 6 or 8 points less fees rather than getting stopped at breakeven less fees. \u00a0If the stop modifies twice then I have the potential for a 34 to 36 point gain on this trade, less fees. If the position gets stopped I will not take a 20 point loss, rather a 14 to 16 point loss.<\/div>\n<div><\/div>\n<div>If we always place the trailing stop at the same distance when we initiate our entry trade, we will always do worse than breakeven if we get stopped out. \u00a0If you loosen your trailer and tighten your entry, you might just turn the account from red to black.<\/div>\n<div><\/div>\n<div><a href=\"https:\/\/www.cannontrading.com\/tools\/order-types\" target=\"_blank\" rel=\"noopener noreferrer\">Read more about order types HERE.<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div><\/div>\n<div style=\"text-align: center;\">Our free platform, E-Futures Int&#8217;l offers trailing stops as one of the order types as you can see below.\u00a0<a href=\"https:\/\/www.cannontrading.com\/software\/e-futures-international\" target=\"_blank\" rel=\"noopener noreferrer\">Sign up for a FREE, Realtime data demo here.<\/a><\/div>\n<div><\/div>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/www.cannontrading.com\/software\/e-futures-international\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/4822db03-e3cc-491c-89d4-4f5799929a23.png\" alt=\"E-Futures Demo\" width=\"596\" height=\"286\" title=\"\"><\/a><\/h3>\n<p>&nbsp;<\/p>\n<h1 align=\"center\">Bookmap Real-Time Order Flow Analysis Webinar<\/h1>\n<div><\/div>\n<div align=\"center\"><a href=\"https:\/\/register.gotowebinar.com\/register\/7333185522435726864\" target=\"_blank\" rel=\"noopener noreferrer\">Register Now as Seats are limited!<\/a><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3 style=\"font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px;\"><strong>Good Trading<\/strong><\/h3>\n<p style=\"font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px;\">Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Futures Trading Levels<\/strong><\/h3>\n<p><strong>9-22-2021<\/strong><\/p>\n<div style=\"text-align: left;\"><\/div>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/ae93e6fd-629b-4826-bdd3-d7c3df036975.png\" alt=\"Support and Resistance Levels 9.21.2021\" width=\"689\" height=\"636\" title=\"\"><\/h3>\n<h3><strong>Economic Reports, source:\u00a0<\/strong><\/h3>\n<p><a href=\"https:\/\/www.forexfactory.com\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-segment-action=\"add\" data-segment-id=\"436d64a0-dd7d-11e3-91c2-d4ae529a8639\">\u00a0<\/a><a href=\"https:\/\/www.bettertrader.co\/\" target=\"_blank\" rel=\"noopener noreferrer\">www.BetterTrader.co<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/files.constantcontact.com\/3dc00ef7001\/acd3430b-f007-4165-aaa5-4b5864e36691.png\" alt=\"BetterTrader Reports 9.21.2021\" width=\"600\" height=\"448\" title=\"\"><\/p>\n<p>This is not a solicitation of any order to buy or sell, but a current market view provided by <a href=\"https:\/\/www.cannontrading.com\/company\/about\">Cannon Trading Inc<\/a>. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear Traders, Get Real Time updates and\u00a0more on our private FB group! https:\/\/business.facebook.com\/groups\/1105191589938254\/ FOMC tomorrow. Do your homework, look at price action during the last few FOMCs. Also we will have a LIVE WEBINAR with live price action post FOMC\u00a0and see in real time what type of information price action and order flow provide.\u00a0Register here. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[358,67],"tags":[],"class_list":["post-17132","post","type-post","status-publish","format-standard","hentry","category-futures-trading-education","category-future-trading-news"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=17132"}],"version-history":[{"count":2,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17132\/revisions"}],"predecessor-version":[{"id":17134,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17132\/revisions\/17134"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=17132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=17132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=17132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}