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Thread: SL for Butterfly

  1. #1
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    SL for Butterfly

    Hi,

    i want to discuss here what is good SL level for Butterfly on case study, below yesterdays bearish butterfly GBPUSD M5, i didn't trade it because i wasn't monitoring market but if i was i would trade it, so my entry would be at 1.27XA and 1.27AB, and i think reasonable SL would be at 1.618XA, how you put stops on butterflys?

  2. #2
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    Hi drapi, i think i would look at the tf and r:r ... i mean if from 127 to 1618 there arent many pips then i agree with you, in 5min tf they are maybe 10-15 pips, but in higher tfs i would have placed my sl few pips over 127, and if it were taken i would have waited for price to reach 1618 and then re entered in the trade with another tight sl... Do you agree?

  3. #3
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    well i dont like reentering patterns, i try to setup my entry and SL once, so when the SL is hit i know the pattern has failed

    i look for 1:3 RR

  4. #4
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    but how do you manage an entry in higher tf? i mean, if in 1h tf there is a difference of 60 pips between 127 and 1618, you take that risk?

  5. #5
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    I use 1% rule ( percent of deposit risked on each transaction), this way it doesnt matter if my SL has 60pips, 120 pips or 10 pips, if I get hit SL i always loose 1%

  6. #6
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    i take it one level at a time as long as i have 1:1.5 RR from d to b im ok w/it although i prefer 2:1 d to b point. i let butterflies extend up to 161xa and 161abcd fib expansion tool. stops at or over the next fib level w/c range from anywhere from 5 - 21 pips sl. hope that helps.

  7. #7
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    anybody else could share there way of handling with Butterflys?

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