Suggested Stop

In situations where the market does not move in our favor, we can prevent substantial losses by the use of stop losses. A stop loss could be issued in a situation when our signal is in the profit and our system indicate a possibility of move against the currently profitable position. Furthermore, in some situations we may consider that it is safer to set stop-loss in order to protect profit. We will close out a position and take a loss when a trade was initiated in accordance with our signal but the value of the short option increased rather than decreased, reaching our "Suggested Stop-Loss Level".

We do not always provide "Suggested Stop-Loss Levels" at the same time we issue a signal. We may instead:

• Issue a "Suggested Stop-Loss Level" at a later time, once a short option position has already been taken;
• Provide a new "Suggested Stop-Loss Level", replacing the one previously issued;
• Not issue a "Suggested Stop-Loss Level" at all.

Note: An alternative way to protect the system from a big loss or to secure already profitable signal is by simply moving the "Suggested Exit" price to the level when the signal will be closed. In some cases, we may use both ways - our system may generate stop-loss and we may move the "Suggested Exit" price - by reducing the traded price range to the minimum when either Stop-Loss or the "Suggested Exit" is hit and the position is closed.

Sign up Now!

One single winning trade
could pay for the membership for years to come.