When we enter a trade, we place our SL either above the swing high or below the swing low, depending on the direction that we are trading in.
When our trades are running, we have certain rules throughout the trade;
To make the trade risk free as soon as possible, we move our stop loss to break even when the price reaches 1:1 and when the price reaches 2:1 we move our stop loss gradually with the price. We always leave some room for the price to breathe, so we place our stop loss above the swing high or swing low, depending on the trade direction.
If we are in a trade short, every time the price makes a new lower low, we move our stop loss to the previous lower high.
If we are in a trade long, every time a price makes a new higher high, we move the stop loss to the previous lower high.
