Stop Limits in Gold

[Bam-Bam 10]

I traded Gold (ZG) over the past couple of weeks and found it to be much more friendly to me than index futures.

 

I've found that most of my intraday setups work very well with a 2.50 point stop limit. That ends up being a little over one ATR for 5-minute charts, depending on the day's volatility. That's equivalent to a 50 point stop level on the YM. A 2.50 point swing is a little rough to sit through waiting for the price to turn back in my favor.

 

I know the easy answer (and the right answer) to stop placement is to let my Reward Risk Ratio determine what my stop should be. Also, my entries could certainly be finessed, and I will focus on that next week.

 

 

Just curious what kind of stop offset other gold traders use. Does this seem a little high?

 

 

Thanks,

 

Bam-Bam