 Hello everyone. I would appreciate a hello or yes I can hear you learn on the message board that would really help me out just to make sure that everyone can actually hear me and possibly see me. Thanks Danilo. Okay great as everyone can hear me probably see me. It's early morning in the USA well not too early it's 8 a.m. for me it's Labor Day so I should be out with my family but instead I'm giving a webinar but that's it's all good it's all good. Hopefully I'll keep it short today around 30 minutes or so and it's a it's a good webinar as a lead-on to them onto the the next one actually. Today we're gonna be discussing setting market appropriate stop loss and take profit levels. Okay now there are quite a few attendees in this webinar so I'm going to try and keep my eye on the questions panel. Sometimes it's a little difficult to keep my eye on the questions panel and on the and on the and on the trading screen but I will I will try my best to do both. So if I miss your question then give me a few minutes and I'll come back to the questions panel and see what what's going on on that side. Okay so that's when you see me looking to the right like this that's when you know I'm busy looking at some at the questions. Okay so I think with that without let's let's let's get going. Today's webinar as I said is about setting market appropriate stop loss and take profit levels and it's a very very important topic of conversation because many people think that to trade profitably or to be a successful trader however you define that is really about one thing and they think that it's about market entry and market timing. The truth is that to be a successful trader is is about two things. It's about the market entry as well as the market exit right and the market exit is is absolutely critical. You cannot do you cannot be a successful trader without having a good market exit. The the other thing that's super important is obviously your risk management but your risk management that is something we're going to be taking into account in the next webinar when we talk about the setting your volume sizes correctly right for when you trade in order to handle a risk management. Today we're looking at stop loss levels and take profit levels the actual levels and next week again the volume. So so let's look at this chart I have on Euro USD at the moment this is a one-hour chart and you can see that Euro's currently trading in 1.09662 and so the question is if I want to go long or short on this chart right now where should I be setting my stop loss and take profit levels right. So let's have a few have a few guesses out there all right if you've all listened to me speak before you know that I'm all about these major turning points in the market and so given the current market conditions you know these are the kind of levels that I see as you know major or important levels in the market so let's look at something like this so how do I how do I identify those kind of levels I'm looking at the major turning points within recent history okay and you can see that that's what I'm doing over here by looking at these kind of things you can see there's consolidation at this level there's consolidation at this level again over here and possibly over here attaching of these important support resistance levels right and notice that I'm using nothing to do with auto charters right now right now I'm purely looking at I'm purely looking at the visuals of the of the chart right it's nothing to do with auto charters yet okay if we switch to let's say a four-hourly time zone you can see how the one-hourly levels also convert into four-hourly levels right except there's some extra ones obviously at the four-hourly level you can see that this was a very important level you can see in the past it touched that level many times again up here right so this is you know from recent history of Euro this is where the important levels are and then let's switch to the daily chart and the daily chart looks like we had it spot on as well although you can't see the details of these first three lines that were drew on a on a very short term basis you can see how these two lines at the top are starting to show us where the support resistance levels were in the past right and so you can see here these levels are really really good and we did this purely by looking at more of the short term volatility then we did the the long term volatility right so it's quite interesting how the recent history really translates into the past history so why am I showing you all of this right why am I why am I showing you showing you this kind of thing that's because if I want to trade you're a USD right my my next question is we need to plan the trade so I want to trade it it can be long or short whatever we choose to trade it at but immediately we have to set a stop loss and take profit okay or it may be not a take profit but at least a stop loss level and so we need to plan our trade I don't just click on trade and then later on I start deciding on you know where I'm gonna set the exit levels right you just got to plan your trade right so and so let's so let's let's look at this so let's assume that we are going to trade a this euro USD short okay yeah actually yeah let's let's assume we're gonna trade it short which means we think it's gonna go down in in in this in this direction over here all right and so what we would typically do is we would obviously click on the the new order button and you know set set a volume let's say point one we'll do a really really a small trade and we would sell at market right okay now where do we set our our stop loss okay so again the stop loss could be set at obviously not this lower line because we're actually going short right but we we could probably because this is a trade made on the one-hourly chart we probably don't want to look at the daily chart as an indication of where we're going to be trading putting our stop loss right we probably want to go looking at the at the one-hourly chart okay so when we look at this one-hourly chart say okay so let's let's take this level here at 1.09965 what we would typically do is you would modify the order and place the stop loss at 1.09965 and we set our order and the order should be over over here if we raise that line over can't see it right now because we've got a line directly over that thing let me try and somehow select this oh let me select that meta won't let me select this let's select this line right now okay oh there we go okay there we go we can see now we can see our stop loss we can see the dotted line okay another way to do it and of course would be to look at where the market is potentially going to be okay so for that what we're gonna do is we're gonna drag the order chart indicator on today and I'll show you two different ways of getting this information the one is to drag the order chart expert advisor on to that chart and you can see immediately that order charges gives us the expected price range movements for euro so now let me erase some of these other lines here so we don't get confused if metal would just let me select them there it is okay not let me say okay we'll leave that line over there now what we can what we can see immediately and I'm gonna just zoom in a little bit we can see these these lines over here on the right hand side of the screen you can see these blue lines and let me explain what they are okay this it says next h1 right which means that this price level here between these two lines these two blue lines is where we think the price is going to trade for the next four hours this is sorry for the next hour this one here is for the next four hours and this one here is for the next 24 hours right notice how by looking simply doing a visual inspection on the chart we've set our stop loss to be in approximately the 24 hour range right so we expect euro to hit to be within the next within the next 24 hours between our stop loss level which is over here and potentially what we could be setting as a take profit right to keep our risk-reward ratio even okay so there is this other alternative way that order charlist assists us in setting these market appropriate market appropriate levels okay so let's take a clean chart let's look at the let's say GBP USD let's look at a GBP USD chart let's see what that looks like okay so in fact looks like GBP USD is very similar to the euro USD let's trade something totally different let's try JPY chart and see what those graphs look like okay so here we go here's JPY let's zoom out but looks like I've got too much info too little information there okay so what order charlist is telling us here is that it doesn't really matter which way you're trading in the situation right we're not using order charlist for as an entry signal that's all this information over here which we've covered in other webinars for now we're just trying to figure out where to use it as for exit levels right so again we're looking at the H1 level here so this is the next H1 the next one hour we're looking at trading between these two prices 106.27 and 106.47 for the next four hours between 106.20 and 106.54 and for the next 24 hours between 105 97 106.77 right so what we can do in the situation if we're planning to trade yen you know we could potentially trade yen let's trade with the current train so let's trade long a volume of 0.1 and set our stop loss where do we think we should set our stop loss right again I want to focus on the latest kind of major turning point so I would set my stop loss somewhere around 105 97 again we can also see though that is quite strong consolidation at the next four hour level at 106.20 right so we could actually potentially place the next the stop loss to be at 106.20 you can see there's quite a lot of consolidation over here we can see it over here over here over here on the end so so again potentially quite a nice place to put our stop loss okay and so notice what I'm doing though I am when I'm talking about setting stop loss levels at the moment right I'm just fixing my my volume okay and that's going to be the next level for the next webinar I'll give you a quick preview of that in just a moment but the most important thing that I'm doing is I'm not randomly selecting 10 per movement stop loss or a 20 per per 100 per 200 per whatever it is I'm actually looking at the market volatility right and the expected market volatility to set my stop losses and take profits right okay this is well I haven't done the take profit side yet but obviously I'm on the on the on the stop loss side certainly I'm looking at looking at the market volatility again nothing to do with with the with with with my risk at the moment okay nothing to do with my risk at the moment okay so here we are where we're in these in these two positions and you know they might go might or might not go our way we'll see as the webinar moves along remember I just traded in a random direction so don't expect don't expect too much okay let's look at some of these trading opportunities that autotox provides us on the left-hand side I want to show you how to use some of those to to uncover some interesting trades and show you how I would set market appropriate stop losses around those trades okay so if you're a VIP trader at Tickmull then you get this little drop-down box called our favorites filter this this is a filter that that filters these trading opportunities are currently six pages of trading opportunities down to the best ones based on past performance again the small disclaimer past performance may not be indicative of future performance but these ones here we can set it to be show me the ones we had a minimum success probability of 60 a percent in the past right with 60% of our trades hit their target target region we we can see something here on on the Australian 200 let's see what that let's see what that looks like okay so we can see over here the Australian 200 we've got an interesting little break out through a resistance level and auto charts thinks the price is going up to that gray level over here now this is an interesting one because this is a very very long-term trade right so you can see that we've switched to the daily chart okay this is on the Australian 200 D1 right so it's all on daily chart and because of that order charges only showed us the one days movement expectation right I don't know if you recall that if we switch to the H1 well we discussed it two seconds ago so I'm sure you recall but when you switch to H1 then you get the the hourly four hourly and 24 hourly projected price movement if you switch to the four hourly then you would get just the four hourly and daily projected price movement and if you trade if you move up to the daily you would get the just the daily price movement right so you can see this this is a very very long-term trade right this this trade here you would need to hold for days and days and days right potentially two three days for it to hit its target price level right so you know again this is a this is a very very important question how do you how do you trade this I mean I traded these Euro position and the USD JPY position with just a fixed size of 0.1 right remember that right I just traded one tenth of a lot you know if I trade this thing you know with one tenth of a lot you know the risk on this is much much higher especially if I'm setting my my stop loss around this level over here right so if we look at these at this price versus the stop loss level on on this side right we're looking at what is it one two three four so we're looking at 966 and 9 so we're looking about 30 pips of of risk over here over here I'm guessing it's about the same no in fact here it's only about 20 pips of risk for the JPY right but if we look at the price difference between the current price on this Australian 200 and potentially a stop loss at 6,400 we're looking at a much much bigger risk over here right and then just 20 pips or 30 pips right so so here we would need to adjust our volume size down right if we were trading or Australian 200 you know with a stop loss let's say around 6,406 then we would set our volume to be much smaller right potentially 0,1 I can't do it right now okay so I can't I can't trade on that one right now but I would set my stop loss much smaller because I obviously want to risk less money because you know my potential downside is much is much bigger okay so let's look at a few other opportunities over here let's see what what we can find and something a bit more short term here's euro ord four hourly chart an interesting one over here we think the price is moving down to that gray box over here again looks like the majority of the volatility is happened in the last very short little while right so what we want to do is you probably want to zoom in there into the h1 chart see what the volatility looks like over here and potentially set our stop losses around you know kind of around these levels right a lot of volatility so depending on which way you're going if you decide to follow auto charlist you would go short again but you need to keep your volatility or your risk in play you know in play in mind when you're doing the the stop loss so you're potentially setting your stop loss around the one hour volatility at 1.6 343 probably what I'm what I'm looking at at the moment okay so what I'm gonna what I what I want to do is I want to kind of go to give you a preview of what's coming up in the next webinar which is well it's appropriate for this webinar but we're going to be going in far far far more in depth in the next webinar and that is a little tool called the auto charlist risk calculator right if I drag and drop that onto the chart okay I get a different little screen I get a little screen that looks like this auto charlist risk calculator and on this little tool again you can tick this button show expected show expected price range movements it'll show you the same price range movements as it did before okay but it's got an extra twist it tells you it tells you how large a position you need to place okay so depending on how much risk you want to you want to take so let's just say that I want to trade short because if you recall my previous screen auto charlist tells me that this but we that it thinks that euro odd is going down right so we can use this tool to set our our volume the objective of this tool is to set volume okay so now notice what I'm saying in this tool is I am going to take my orange line and I'm gonna set my orange line where I want my stop loss to be okay so this I'm trading short and I want my stop loss to be up at 1.064 so now if I want to risk $100 I would trade a volume of 0.21 if I want to risk $1000 I would trade a volume of 2.05 right so let's say I wanted to risk $100 here I would set a volume of 0.21 let me show what that looks like so if I want to go short right on on euro Australian dollar and I want to set my stop loss at 1.64025 I would set my volume to be 0.2 okay so if I sell at market now I've sold at market I've set my stop loss up at the yellow line and I've only risked $100 right so despite the fact that I'm risking 72 pips on this trade I know that I'm only risking $100 of course it could be slippage sometimes in the market don't get executed exactly on price but in essence I've only risked $100 right and I know this for a fact so now this is euro ord what if I'm trading something like again let's try a totally different one pound Swiss franc okay trading pounds was frank let's just say I want to trade this thing short okay so let's trade the short and I want to set my stop loss to be at this level over here 1.2 I'm risking 89 pips okay and I only want to risk $100 that means it tells me what position starts to take right so again say if I'm trading this thing I want to set my position starts to be my position starts to be 0.11 I would set my stop loss to be this price over here and I would sell at market notice what I've done in these latest two trades over here right the bottom two right I traded euro ord with 70 something pips of risk and I've only risked $100 I've traded GBP Swiss franc a totally different the PIP values are totally different on GBP Swiss franc than they are from euro ord and yet I've also only risked $100 because I've adjusted my volume so let's look at those volume numbers look at these two volume numbers right compared to these two volume numbers right so on the first two we just looked at setting market appropriate stop losses right so where in the market should we set our stop losses the next step is obviously the progression which is how a larger positions do we set for those for those positions that we're taking right once we've set the market now now in the next webinar of course we're going to go far far far more in-depth into that we're going to look at taking positions based on custom entry process so so pending orders both you know by limits sell stops you know buy stops sell limits all these kinds of different you know market orders and how to use the risk calculator in those types of orders right so that's going to get a lot more intense you guys have to know your your pending order position sizes very very important when you're when you're trading right okay so again if we so one thing to note here is that the order charts risk calculator and the order charts expert advisor can work in conjunction with each other right so here it is if we're want to wanting to to look at for example this opportunity here on USD Swiss Frank and we want to trade we want to trade it along like order says let's look at what we'd how we do this in combination also now we take it to the third level which is taking order charges an entry price as sorry as an entry signal with a target setting a market appropriate stop loss right so now if we say order charts thinks this thing is going up north right it's going to around 1.0 nice round number and let's look at this we look visually we say okay we want to set our stop loss around this level over here so now what we would do and we say we want to risk a hundred dollars okay let me remove some of my drawing drawing lines there we go now what I would do is I would go long I would set my volume to be 0.05 I can set my stop loss to be where my orange line is and I can buy so notice what I did I used order charges as an entry I use this opportunity here US dollars was a swissie on the daily chart I set my stop loss visually right push the wrong button there set my my stop loss visually by moving this orange line up and down set how much I want to risk on this trade and then obviously I'll calculate the volume and then set my actual position of course in this situation you could also set your take profit right where's that trade there it is at the bottom we should we could set our take profit if you want to keep it where order charges is saying it'll go right so so you can set your take profit at let's say one okay so there it is I got it slightly off but anyway I'm in in the ballpark certainly for for this presentation okay so I hope that I hope that shows you kind of the full progression from using order charges as a as the market entry in the timing all the way through to using the risk calculated size now again remember risk calculator we're going to have a full 30 minute to 45 minute session at the next webinar on that we're going to go very very in in depth over there okay I see I have a question coming through from from Navin I hope I have pronounced that correctly Navin how do you get them on your chart right so Navin is asking how can I add order charges expert advisors and risk calculator to my empty full panel if you go to the tick mill website and you go to the order charges page you'll actually have a download there you just download it and you click it's one of those installation was as you click next next next and then you you get to that thing you get it installed and you'll have in your expert advisor section an order charges indicator or it a choice expert advisor and under your indicator section you'll have an order charges risk calculator and all you do to do to you get them to work is you literally just drag and drop them and push okay and then you and then you drag and drop the order charges risk calculator and you push okay and they'll appear on your on your on your chart okay so that's how you how you get them how you get them on to your chart I wonder if there's any any more questions that I can talk about I want to switch screens quickly a while we're while we're we're talking about the stuff if you drag and drop your order charges expert advisor onto your chart there's another little section that I want to talk about here and this is little web this little world icon if you click on that world icon you'll get a link which you can copy and paste into a web browser right so if you copy and paste that into a web browser then you will come up with something like this it's the order charge web application it's slightly updated we're busy replacing it at the moment but what I want to show you here in terms of market appropriate stop loss and take profits it's under this volatility analysis a section okay so the volatility analysis section shows you the potential price move of each instrument that you have on your mt4 platform right so those remember I showed you that in mt4 itself with those levels so here it's depicted the same way uh it's it's depicted the same way except there's some additional information I want to show you how the volatility of each instrument changes right uh for every hour of the day so I've chosen the australian dollar canadian dollar right on my speed at the moment and what we have here is a visualization of the volatility right volatility being the the y-axis here and the hour of the day being the the x-axis on this way right so for every hour of the day how much price movement do we expect to get on odd CAD so you can see that well I'm set to america chicago because that's where the time zone that I'm in um you can see that four o'clock in the morning my time I'm getting quite a lot of volatility on the australian dollar uh canadian dollar then at around 3 p.m to 5 p.m my time I'm getting a lot of volatility all right so in fact um at you know four and around at these at 4 a.m and and this uh late afternoon kind of sessions I'm expecting around uh should we look at between kind of 15 to 20 p.m movement on that instrument right for every hour of the day whereas uh you know during non volatile hours I'm looking at uh five to ten pips of movement on australian dollar canadian dollar right so what I'm trying to show you here is that if you're using a fixed a fixed stop loss let's say five pips or ten pips stop loss what you're doing if you're trading with those kind of fixed stop losses if you're trading at these volatile hours of the day you're going to get knocked out due to noise right market noise and that's something you don't want to happen you don't want to get knocked out due to noise if you're going to make a loss on your trade let it be because you just made the wrong trading decision don't let it be because you're uh because you're just knocked out because of market volatility right let's look at uh one or two uh more examples uh let's look at um uh euro USD that's a typical one that everyone looks at obviously euro USD you can see that I am uh obviously again uh chicago in the usa I get a lot of volatility in the euro uh at about 10 o'clock my time uh and again uh you know during a late afternoon uh my time okay this does not look like this does not look like america chicago time zone looks like there's some kind of error here this looks like more of a european time zone that I mean at the moment uh this simply can't be right okay I think this should be shifted by a few hours um I need to I need to get the guys at the office to look at that uh but what I'm trying to again the thing that I'm trying to say to you is that you cannot trade a fixed a fixed stop loss and take profit this is one way to um make sure that you lose money in the market because you're going to get knocked out due to market noise if you're using for example a five per or ten per stop loss on your USD you're going to be in the market for five minutes or ten minutes before you get knocked out if you're trading during the opening of the US session for example right so uh definitely uh not something uh you should be doing and again so I invite you uh to uh in your metatrader uh uh uh plug in just launch that little uh launch that little uh web icon or the little world icon copy and paste this into a graph into into a web browser and then click on volatility analysis it'll show you the expected price range movement for every hour of the day again the uh the uh the the same information is contained inside this gray uh sorry not the gray area inside these blue lines over here right except these are updated real time the the one that I showed you on the website is just more for your reference uh you know uh to show you to prove to you empirically how uh volatility changes throughout the trading day uh these blue lines here all really need to know because they actually go thinner and the kind of they expand and contract as the volatility during the day changes right so this is actually all the information that you need okay I've got a few um uh questions over here uh I've got um a wise I think I'm hoping I'm pronouncing that correctly a wise um sir in this trade you lost more than you are right okay so I'm glad that someone noticed this so um a wise is is is looking at my um uh USD Swiss franc uh a trade that I was proposing earlier where I traded long and what a wise is saying to me is that my my potential take profit is this but my risk is a hell of a lot more right so a wise you're absolutely right um this is purely for demonstration purposes remember I'm not in this presentation here trying to make money here I am purely trying to demonstrate to you of course it is not a great idea to have a a a risk reward ratio greater than one right so so of course in an ideal situation you would be setting your stop loss and take profit at least equally equidistant uh from the um uh from the uh from where you're opening your position absolutely um okay um I see uh there's some more questions coming out a wise you wanted an example of USD Swiss um oh yeah that's the example on USD Swiss franc that we that we're just talking about so you're absolutely right remember everyone what I'm showing you here you should not be copying on your trading screen this is purely for demonstration purposes right about how the strategy around setting um uh stop loss levels so peter is asking is this new software to trade with uh peter uh so um autochartist is a tool uh that is offered by uh ticker mall to their customers for free it is an analytical tool uh that can help you find trading opportunities which is this screen that we're showing you now uh over here as well as setting uh a market appropriate stop losses and take profits which is these blue lines over here um as well as a tool to help you manage your risk right so that if you do lose you don't lose money that you can't afford to lose right and that's this risk calculator here so this webinar series peter has been around all of this this is the third in our series uh of a discussion of the autochartist tool it is a free tool the you don't have to pay anything um uh ticker mall uh pay autochartist us uh on your behalf so no one is trying to sell you anything here in this webinar it's purely educational um uh for you I hope that makes it clear um uh danilo or danilo again not sure about the the um the uh pronunciation uh danilo is asking on volatility index how many days are involved in statistical computation okay so danilo what is what danilo is is asking is um if we looking at this uh these graphs over here about the expected price range movements and you're a usd you know how um the expected price range movement for every hour of day why how much data is used to compute this so the answer is six months worth of data danilo we we take six months worth of data to compute these uh ranges um and uh danilo will your question tells me that you probably know a little bit about statistics so the um the dark green area is uh the uh mean uh sorry actually it's the yeah it is it is the mean and then the uh light green area is what we call one standard deviation so if that means anything to you it basically means that the mean is really the average is the gray area and then within 66 probability that'll be within that um uh that uh range of volatility that's the light green area um now um the the there's another interesting little graph here below which i didn't really go into uh and that is an interesting one for euro usd price movement range per day of the week okay so this is an interesting one because it shows us that uh euro uh trades a lot more volatile uh is a lot more volatile on a monday and a wednesday and a thursday and friday then uh actually it's the most volatile on a wednesday thursday friday um uh monday and tuesday are the least volatile but monday has the most variance right so the the range is bigger now you might wonder why is this important to me um it is actually very important let me see if i can find um a here we go a uh a currency that's close to my heart that's the south african rand obviously if you notice the south african accent you'll notice that with a lot of uh emerging market currencies currencies where there's a high interest rate uh yield you will find that why the wednesdays or thursdays are far more volatile than the other days and that's because depending on different countries they're double or triple swap uh paying uh days right so so people that want to earn the swap or want to avoid paying the swap overnight swap um they're getting in and out of these um emerging market currencies that are that have a very large interest rate differential and so you'll see very quickly that wednesdays or thursdays are normally uh very high volatility periods come days compared to other days um in in in the week um uh so uh peter asked again um he's having some sound problems uh yes peter you're you're correct um you're you you are correct this is a a free tool um well it's not it's free for you uh it's not free for for tick mill uh tick mill pays on pays autochartist uh on you on your behalf uh but yes for you it is it is absolutely free again no one's trying to sell you no one's trying to sell you anything there is another question um kenneth is asking a question which i think i answered earlier but i'll repeat that so so kenneth on your mt4 after you've installed the autochartist the autochartist gone through the autochartist setup which you download simply from the tick mill website to get the risk calculator on your screen you go to the indicator section and there there's autochartist risk calculator you just drag and drop that onto your chart and that'll give you what you need okay um uh okay uh so um i think that's pretty much the end of the questions um i see some people are struggling with how to get the thing let me find you the website um url give me give me one second everyone i'm just pausing my screen i'm uh just pausing my screen i'm i'm going to bring give you the actual um the actual website um so here it is i'm sharing my my screen again i can you all see the tick hope you can all see the tick mill website um under the tool section there's something called autochartist uh you click on autochartist it tells you obviously a web page about how amazing this tool is of course you expected that and then at the bottom there is a link called install mt4 plugin so you click this link it downloads a piece of software and you use and you just you know you run it like you would install a normal piece of software you just click click click next next next until uh um um uh uh is is installed so um uh danilo is asking a question about if the tool is available on demo mt4 so the answer is yes it is available there are basically three tiers of usage of the autochartist tool so the first tier is obviously the demo demo uh if you're a demo account holder with with tick mill in which case you get both tools except the results in the expert advisor are a few candles delayed okay so you don't get the um this analysis uh as the price breaks through or or signals right you get them a candle or two delayed that's that's uh the one limitation on a demo then if you are a live account holder you get everything in live but you do not get this little uh minimum probability uh uh filter over here if you're a vip account holder you get everything plus you get this minimum probability um filtering which basically reduces the number of potential trading opportunities it looks at the past performance of each pattern and based on the past performance filters out what autochartist thinks believes to be the most likely successful trades going into the future again disclaimer past performance might not be indicative of future performance but but I hope I explained what that is so so really there's three tiers of usage of the autochartist tool now this webinar has been recorded and it should be available soon on the tick mill website and with that I leave you I really appreciate your time this morning and attention there was quite a large group I hope I didn't miss any of the of the questions I tried not to but there's quite a few of them coming through I really appreciate your time enjoy the rest of your day or your evening wherever you are in the world