In regards to ITM 5 minute binaries when using trend catcher system:
If I understand correctly, stops should be set at my strike but, but what price should i set the stop at?
I’m assuming I should set it at the same price I entered but in the opposite direction so I don’t lose any money in case the market moves against me.
Please Clarify for me,
Thanks in advance,
Hi Jordan,
Probably not the answer you want to hear, but placement of stops should be according to your own risk management. That being said, 5 minute binaries are very volatile and the price can go from 50 to 85 to 20 to 70 and all over the place from second to second. Stops are very hard to manage in that time frame and a lot of times you find yourself stopping out for a loss, only to see it close ITM or not using a stop and having it close OTM. The new scanner has a great tool (lightning submission) that will allow you to exit your trade in an instant as opposed to having to open a ticket and then submit the order. Many traders have found success using that to manage their entries and exits on 5 minute binaries.
There really is no one answer fits all when it comes to risk management since everyone has a different tolerance level. My suggestion is to demo utilizing the scanner and tools it provides to find what your tolerance level is and to perfect your entries and exits.
Good luck.
Peter.