About stop loss range

The purpose of stop loss is to prevent reverse market fluctuations from causing a devastating blow to the account.

An excessively large stop loss range, such as 20%, is meaningless because you cannot afford to stop the loss a few times before the account returns to zero.

A stop loss that is too small, such as 1%, is meaningless because it cannot tolerate small fluctuations in the market and can easily result in losses.

From this point of view, stop loss must at least meet the two conditions of protecting the account and tolerating market fluctuations.

One possible way is to control the position. For example, if you use 20% of the position to make a single transaction with an initial stop loss of 10%, then the position risk is 2%. #交易策略