{"id":208691,"date":"2012-10-09T11:39:08","date_gmt":"2012-10-09T06:09:08","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=208691"},"modified":"2012-10-09T11:39:08","modified_gmt":"2012-10-09T06:09:08","slug":"setting-trailing-stop-loss-percentages","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/10\/09\/setting-trailing-stop-loss-percentages\/","title":{"rendered":"Setting Trailing Stop Loss Percentages"},"content":{"rendered":"<p>Using a <a href=\"http:\/\/stockviz.biz\/index.php\/2012\/10\/04\/trailing-stop-loss\/\">Trailing Stop Loss<\/a> (TSL) is one of the best ways to limit your downside and protect your winning trades. Instead of relying on your gut, here\u2019s a straight-forward way to derive the appropriate TSL percentage for your trades.<\/p>\n<h2>ATR based TSL Percentage<\/h2>\n<p>ATR stands for <a href=\"http:\/\/stockviz.biz\/index.php\/technical-trading\/average-true-range\/\">Average True Range<\/a>. It provides a measure of volatility that incorporates gap\/limit moves. The range of a day&#8217;s trading is simply <strong>high \u2013 low<\/strong>. The true range extends it to yesterday&#8217;s closing price if it was outside of today&#8217;s range.<sup><a href=\"http:\/\/en.wikipedia.org\/wiki\/Average_true_range\">1<\/a><\/sup><\/p>\n<p>To set a TSL percentage, just multiply the latest daily ATR value by 2 and divide by the previous close.<\/p>\n<p>What you are doing here is simply attaching a risk tolerance level (<em>2<\/em>) based on the stock\u2019s intra-day moves averaged over a period of time. <\/p>\n<h2>Example<\/h2>\n<p><a href=\"http:\/\/stockviz.biz\/StockDive.aspx?TICKER=COLPAL\"><img decoding=\"async\" style=\"margin: 10px\" alt=\"technical analysis chart\" src=\"http:\/\/stockviz.biz\/content\/adhoc\/30b18a87d80344768469858454c2c49a634853791571815882.png\"><\/a><\/p>\n<p>For example, if you were trading [stockquote]COLPAL[\/stockquote] today, you would set the TSL to<\/p>\n<p align=\"center\"><strong>2 * 30.5\/1,250.65 = 4.88%<\/strong><\/p>\n<p>You can use StockViz to set a TSL alerts for your trades. Read <a href=\"http:\/\/stockviz.biz\/index.php\/2012\/10\/04\/how-do-you-set-a-trailing-stop-loss-alert\/\">this<\/a> to see how.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Using a Trailing Stop Loss (TSL) is one of the best ways to limit your downside and protect your winning trades. Instead of relying on your gut, here\u2019s a straight-forward way to derive the appropriate TSL percentage for your trades. ATR based TSL Percentage ATR stands for Average True Range. It provides a measure of &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[960],"class_list":["post-208691","post","type-post","status-publish","format-standard","hentry","category-your-money","tag-returns","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/208691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=208691"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/208691\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=208691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=208691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=208691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}