 Hello everyone. Good morning, good afternoon, good evening wherever you are in the world. My name is Zilla Nasbel. If you haven't seen me before or heard me before, I'm the CEO of AutoChartist. I was one of the regional founders. Delighted again to give you today's presentation about setting market appropriate stop loss and take profit levels, so market appropriate exit levels. Before we get going, I've got to read you a disclaimer. So let's do that first. So trading financial products such as CFDs on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk. Good. Now that the lawyers are happy, interestingly enough, this today's presentation is in fact all about risk. And so that's a very, very appropriate disclaimer to read because hopefully coming out of today's presentation, you'll learn a little bit about setting correct stop loss and take profit levels. So I'm assuming that everyone can hear me. I'm getting no feedback saying they can't hear any audience. I'm sure everyone can hear me just fine. So just to let you know, there seems to be a bit of confusion in previous webinars that I am not here to sell you anything or pitch you anything. The Autochartist suite of tools is freely available to tick more clients, right? So this webinar is purely educational. There's no sales involved. You don't need to pay for this product. You get it directly off the tick more website. You go on to trading. You go into the tools menu on the tick more website and then you click on Autochartist. And once you click on the Autochartist button, you will get some information about the Autochartist analysis suite. And if you scroll towards the bottom of the screen, you will get a download for an empty for plugin, which is the component that I'm going to be using today. I'll also be using the Autochartist web application. So again, no need to buy anything or subscribe to anything. This tool is freely available to you if you're a live account holder at tick more. So in previous webinars, we've gone through the installation process. And once you've gone through the installation process of Autochartist on your MetaTrader, you will have a little expert advisor in the corner. And that is what we're going to be talking about today. Again, don't worry. I know it's called an expert advisor, but it will not trade on your behalf. Okay, so don't worry about that. It's very safe to drag and drop it onto your MetaTrader chart. So what you do is you find a chart that you like, you take the Autochartist expert advisor and you drop it on. You push okay. And there's no other configuration to be done unless there's some technical difficulties. But other than that, you just drag and drop and you get the Autochartist market scanner available to you. And Autochartist will give you all the trading opportunities in the market based on the MarketWatch window that you have. But today's presentation is obviously not about which trades to take and how to find trades. Today we're talking about stop-loss levels and take-profit levels. So what we're going to do is we're going to click on the first opportunity here that we've got listed. EuroCAD Autochartist says to head and shoulders. It doesn't really look like a head and shoulders to me, inverse head and shoulders to me possibly a little bit. Not really such a good one. Let's see what this one here on USDCAD looks like. Let's give that a moment to come up. Okay, there we go. Come on, USDCAD. There we go. Like I said, click on USDCAD. Let's see what that looks like. Okay, that looks a little better for me. This is certainly something that I look like I can trade. And so now the question is for this presentation, let's say I want to trade this thing short. Let's actually go ahead and do that. Let's trade short, USDCAD. We sell the market right now. Okay, so obviously, Autochartist gives you this expected range where we think the price it is going to at the target level. And the question now is where do we set our exit levels? Okay, let's move this little block out the way over here because those are the pattern details which we discussed in previous webinars. So now it's very interesting. How would I trade this? The first thing I'd do is I always trade the information we have from the past. So we can see interestingly enough that I'm just drawing some lines on here that this target level coincides with some interesting previous levels in the market. So over here there was an interesting level. Maybe there were two breakouts over here. There seemed to be support, definitely support over here. So this is quite an interesting level for me. So it looks like the target region exactly correlates to this level over here. Let's see what other levels we've got that are interesting in this scenario. So there is this level over here. Again, we can see that the price has consolidated over there, touched it a number of times over here. One could even argue a little bit over here, certainly on the very, very far left hand side. You can see there's quite a lot of consolidation and resistance at that level. So that also seems to be quite a significant level at that price over here. So these are all very, very interesting levels for us that we could look at as exit levels on the take profit side. So now we look at this and it's certainly now one very important thing to remember is that we are currently making it in the market, which means we have no stop losses in take profit. So we need to hurry up and actually set some stop losses in take profit for this instrument. So let's do the take profit side right now. Okay, so we've got a short position happening here. Are we going to set some take profit levels and see what that looks like? So the first thing's first is let's agree that this is potentially a good take profit level for us over here and set our take profit at 1, what is that 1, 2, 4, 59. We'll make it 1, 2, 4, 60, which is what I like to do because that is a nice round number, right? 1, 2, 4, 60. We'll set that take profit level at that level over there. And good, there we go. We can see we've set our take profit level over here. Okay, good. And so now the question is on the stop loss, on the stop loss level. But I also want to give you a kind of a little bit of a hint about something. Is that sometimes these kind of chart patterns make us see things that we wouldn't have seen before, right? So the first thing is obviously the current movement down to this level, but also it's made us see, notice this other very, very important level over here. This one here at what was it 1, 1, 2, 4, 1, 50. At 1, 2, 4, 15, right? Definitely a potential level over here. So again, this might be interesting for us to watch if the price hits this, hits our initial take profit. Right, we might want to set another short position down to 1, 2, 4, 15. Right, that could be another thing for us to do. However, we're not going to do that right now. We're not going to, we're not trying to be greedy in this presentation. We're just trying to show where we would set stop losses and take profits. Okay, so now we no longer make it in the market on our take profit side, but we are definitely make it in the market on our stop loss side, which is obviously the biggest risk of all. Okay, so let's see what would happen on the take profits on the stop loss side. So on the stop loss side, we need to be quite careful. So we need to find some levels of consolidation. This one here that I'm drawing right now for you is definitely one. And you can see that this is, there was area consolidation over here. I touched it again over here, a little bit of consolidation on this side. Again, there is another level over here, which is the previous major turning point, psychological turning point in the market. Let's actually squeeze this whole graph in and we can see, and we're going to zoom in a little bit or zoom out a little bit too, to get a little bit more history. And interestingly enough, this last turning point over here, interesting enough correlates to quite a bit of consolidation in the past, right? Very interesting. So this is a very, very interesting level for us. Similarly, we can see this level that we've got here. Also quite a few consolidation points in the past based on that level too. So again, two very, very interesting levels that we're looking at over here. And which one do we use as a stop loss? Let me zoom back in a little bit and show you what I would do to kind of try and rationalize this whole thing. Let me just put my, erase all my drawing objects for just a moment. Okay, here we go. So the way I rationalize it is as follows. Okay, so we're going to go into these levels that Autochart has drawn for us on the right hand side. So I'm not sure if you guys noticed, but there are these blue lines that Autochart is draws in on the right hand side. And I'll discuss them in more detail in just a moment. But essentially what they're doing is Autochart is telling us where we can expect the price to be within the next four hours, right? That's within this range here. And the next 24 hours, that's within that range over there, right? And this is what we call that Autochart is the expected trading range based on volatility. Okay, so this expected trading range is not directional, right? It's not directional like the trading opportunities that Autochart brings up. This thing tells us the expected price range movement for the next four hours and 24 hours. So the reason it does four hours and 24 hours is because we're currently on the four hour chart. If we had to change our chart to a daily chart, right? Let's see what happens. We'd only get the daily expected volatility range. And if we had to set our chart down to a one-hourly chart, then we would get the one-hour volatility range, a four-hour volatility range and a 24-hour volatility range, right? So we'd always get the chart interval and higher, right? So if we go back to the four-hourly chart, which is how we deduced our current short trading opportunity, we see that the expected price range movement is for the next four hours, is between 125.34 and 124.68, right? And on the 24 hour at 124.53, it looks like to 124.49, right? And so we can see immediately that on our take profit side, we have set our take profit at 124.60, which is kind of in the middle between the four-hourly and the 24-hourly trading range, which is in fact where we have our 125.37 stop-loss level. So now we have a decision to make, right? And the decision is, do you have a risk-reward ratio of lower than one or greater than one? Now some people say you should never trade to the risk-reward ratio of less than one, which means you're risking more for the same gain. I know some very successful traders do trade that way because sometimes when they make a win, it's really, really big. But because they follow the trend, for example. So however, I think for this presentation, it's keeping simple. And because we're able to derive a take profit at this level over here, we should look at taking the same amount of risk on the stop-loss side. So let's, for this example, ignore that stop-loss level and actually set the stop-loss level at this price over here, which is, what is that? Oops, I've drawn over the line. It is 125.37. So let's right-click on this, modify the order, and set the stop-loss at 125.37, and we'll modify that order, and we should have that order set in place now. So now we have a full order set in the market, which is we have an open position, and we have a take profit, and we have a stop-loss. And now at this stage, I just want to take one moment's pause in that some people tell me, you learn I don't trade with stop-losses and take profits because I watch the market all the time. I watch the market all the time. I keep my eye on it. And so I'm able to take action when the market moves the other way in my direction. Now, what if you have a power failure at home? Or what if your hard drive crashes? Or what if your monitor blows up? Or overheats? Or something like this, right? There could be a number of things. Your baby, your child could walk into your room and spill a cup of juice onto your laptop or your computer, and suddenly your computer switches off. What are you going to do then? What are you going to do when you have nothing to control your trade with? So I always tell people that no matter what your trading strategy is, you should always have a stop of last resort. Always have a stop-loss level set in the market, even if it's way out of the market. So in this example, let's say we didn't want to set a stop-loss, but we set a stop-loss really, really high somewhere so that in worst case scenario, like what they call force majeure in legal terms happens, we're still safe and we can sleep easy at night. So a stop-loss level is used not only to actively manage your trade, but also as a mechanism for really an act of God and to manage your risk on the act of God. So please, please, please keep that in mind. Even if you don't trade without stop-loss levels, always keep in mind at least put a worst-case scenario stop-loss level into your trade. Now we've placed this trade and we can let this one trade and we don't have to worry about it because we obviously have the stop-loss and take profit set at the broker level so we don't even have to have the chart open in order to monitor it. Let's move on to this other example over here. The EuroJPY example, a rising wedge on EuroJPY. What happened to my order chart is there? Oh, there we go. Okay, my EuroJPY screen is changing. Okay, similar setup to the previous one so I'd rather not trade that right now. Let's actually trade something completely different. Let's try this EuroJPY four-hourly example over here. It might give us a different kind of setup to trade. Yes, that certainly is a different setup. This is a resistance level, right? So we traded an example of a rising wedge that was going down with a short breakout and now we have an emerging EuroJPY example. So we know it's emerging because there's a gray arrow and we can see quite clearly that this line over here, this is the resistance level and because the price is moving towards that line but has not yet broken through that line and so let's actually look at seeing how we're going to trade this example. So first things first, let's actually go ahead and place the order and this might not be the way you would do it, I would normally plan my trade from the beginning to the end before I place my order but let's actually just go ahead and place that order. The market's moving against us slightly but never the less. Anyway, this presentation is not about making money, it's about just showing the concept of the stop losses and the take profits. So order chart is immediately obviously gives us a potential take profit level which is this level over here where the resistance line is at 13278. But I am not sure whether I would set my take profit there to be honest with you because yes there was a little bit of a resistance level, it seems to be a major turning point slightly higher up over there as well. Let's actually zoom out a little bit and see if we can get more information. So this is a problem, right? I'm looking at this chart now and thinking, well this is a problem for me, why is this a problem? Maybe I rushed into this trade too quickly for this example. There's been nothing in the past to show me anything of importance at these levels. That means we're testing levels that are really, we're going to levels that are really untested for EuroJPY, certainly within the past, the recent history. Which is a bit of a problem and this is where we come into the situation where I just jumped into that trade for this presentation but maybe should have thought about that a little bit more carefully. So we're untested territory and so this is the only information we have to go by. So let's look at the other side. Let's look at the stop-loss side. We're in a long position. Let's look at the stop-loss side. Certainly the big stop-loss over here we can see immediately is around this level. We can see that the price has tested that level over here, over here, over here, with a major breakout through this level here. Breakouts, big bars and candle breakouts are also very, very important to me as indication of important psychological levels. So certainly in this trade, I'm looking at the stop-loss level to guide me in terms of my risk and reward. So let's go ahead and set a stop-loss level on this trade at $134.90. Oh, did I get that wrong? Oh, sorry, $131.90. Well, that would have been way out of the market. Sorry, $131.90. And I'm going to erase this drawing object so you can see my stop-loss level over here. Now that I've set my stop-loss level, now my question is, what am I going to do with my take profit level? So now again, I look at the volatility tool and I can see that I expect the price of Euroyen to trade between the ranges of $132.14 and $132.97 for the next four hours and for the next 24 hours between $131.86 and $133.24. And so I'm getting an understanding of where I can expect the price movement to be in the next few hours, right? So again, I look at where I set my stop-loss and so I let that guide me in terms of my risk-reward ratio. And so this level of $133.05 approximately looks like a very interesting level for me because it will give me a very even risk-reward ratio. So how about I go ahead and I modify that order and I make my take profit at $133.05 and I would edit that order, there we go. And so there is my full position in the market. So here I am in the market of two trades. And again, now that I'm in the market, I don't have to watch these charts, right? Well, I can, of course, switch them, but if I don't want to, I don't have to because my order chart is showing me, is screening all the charts for me. Okay, so that was an interesting way of trading this EuroJPY example. But along with this, I want to show you another way I could have traded this. Okay, so the other way I could have traded this EuroJPY example would have been to wait for the breakout. Okay, so if my resistance level is, let me try and get that as accurate as I can. Let's say around $132.78. What I could have done is I could have traded a pending order. I hope you all know how to do a pending order. I could have done a buy-stop, right, which means trade when the price gets over that line, trade it, right? So I could have done a buy-stop at, what was it, $132, let's say $80, right? I would have given it a bit of time to break out. I could have done that. Okay, so now notice what I did there. I've got a pending order at $132.80. So what would happen then is that I wouldn't be in the market immediately. I would have only been in the market if there was a breakout through this resistance level. Okay, so that's the other way of trading these what we call emerging patterns. So out with the prices not yet broken through support or resistance is we can trade these emerging patterns with either buy-stops or sell-stops. Okay, so I'm going to delete this order for now because we're not in this presentation to talk about pending orders and how to trade that. We're more talking about the market-appropriate exit levels. Okay, let's look at one or two more examples. So let's switch to this GBP Swiss franc for hourly chart over here. Very similar to previous setups. I won't go through that. Very similar channels is very similar to trading the rising or the falling wages. So I'm going to skip that one. I'm going to go to a double bottom, see what that looks like. Okay, so this is quite an interesting one, this double bottom. Let me zoom out a little bit. So what am I seeing over here on this double bottom? So I am seeing again a interesting level take profit level over here on the daily level. So daily meaning in the next 24 hours, although I'm not sure whether this is something I would set as a take profit, I might want to look at something around this level here because why is that? Because I see in the past consolidation here, here and here at that level. So I might want to kind of squeeze that in a bit and if we let that guide us on the risk reward, then we might be looking at this level over here in terms of stop loss, which is interesting actually in of itself, maybe a little bit lower over here because we can see this price consolidating over here, over here, again over here, definitely over here and over here and over here. So in this scenario, this might be a trade where I would consider a risk reward ratio slightly lower than one on such a trade. Again, I can place this trade, I can go long in the market and I can set my stop loss, I can do it all immediately now at 1.0981 and I can set my take profit at 1.1036 and I can buy and there we go, my entire position is in the market and there we go and I'm in the market now on three different trades. Now note there's another thing that we've just done over here, right? So what we've done is we've taken a position on USD CAD, we've taken a position on EuroJPY, we've taken a position on OrdinZD. Notice how we have positions on lots of different instruments. Certainly this is a great way to trade and not focus all your energies and all your capital on simply one trade. You need to try and diversify your risk because as you know in the trading game, it's not about making 100% profit or even 80% profit. Professionals look at making 51% or 52% profit. 51% or 52% of their trades want to be profitable, right? So the idea is to spread your risk to make educated guesses about where the market is going based on your technical analysis or whatever it happens to be. We use support and resistance at all the charters. Set market appropriate stop loss and take profit levels and obviously then hopefully maybe you make a loss on one and a profit on two of them or hopefully your win-to-loss ratio will be higher, right? Okay, so we've got some entries into the market. What I want to do right now is leave my Metatrader open for just a little bit and then it'll run. But what I want to do now is I want to open the AutoCharless web application to show you an interesting piece of information. So if you want to open the AutoCharless web application, you would click on this little world icon. You would copy this URL from this application and then you would open up your web browser, paste that URL into the toolbar at the top and you will get the AutoCharless web app. Now what I want to focus on here in this presentation obviously is the volatility analysis, which is where you get those levels that I showed you in Metatrader, right? We actually call it the trumpet. So here it is as a trumpet. So this is an example of the volits expected volatility range for Euro-USD. I am set to America-Chicago, so that's 730 America-Chicago. So from 730 America-Chicago, we expect Euro-USD to trade between 1760 and 1822. Looks like for the next four hours, et cetera, for the next 24 hours and 1776, between 1776 and 1805 for the next hour, right? So this is the same information that we got in the Metatrader, right? Those blue levels that I showed you earlier. But there's another piece of information I want to show you, which isn't available in Metatrader and only available in the web application. And that is this price volatility range per hour of day. So what this shows us here is for every hour of the day, what is the expected price range movement for that instrument? So this is the expected price range movement of Euro-USD for every hour of the day. And you can see, again, I'm based in Chicago time zone. This might be different for you. That I expect an increase in volatility from around 1 a.m. at Chicago time, all the way through to about 10 a.m. at Chicago time. And why is that? That is because this is the European session. And as most currency traders know, the center of the currency trading world is not New York. It is, in fact, London. That is where all the clearing happens. That is where all the market activity, the volatility, and the liquidity happens. It's during the London hours. So this is why you will notice how we expect, let's say, at the opening of London, over 20 pips of movement for Euro-USD during the first hour of the London Open. When New York opens for the first three hours, we see massive volatility. Sometimes up to 34, 35 pips in the first hour. So the question is, I see a lot of traders, they are told by educators, such as me, to set stop losses. But then they're trading, let's say, for example, the opening of New York, and they choose a 10-pip stop loss on Euro-USD because they're only willing, let's say they have a standard account and they're willing to lose $10 a pip and they're only willing to lose $100 on the trade. So they decide on the fact they're going to use 10-pip stop loss. But a 10-pip stop loss on Euro-USD is going to last you about five minutes during the New York Open. You're simply going to get knocked out because of noise, and that is just a really terrible thing to happen. If you're only willing to lose $100 on a standard account, and that's one pip for every $10, then you shouldn't be trading with stop loss of 10 pips. What you should do is you should actually trade, you should adjust your trading size. So if you only want to lose, let's say, $100, but you want to set a much larger stop loss, then only open a 0.1 or 0.2 or 0.3 lot to position on your graph. So let's actually look at that. Well, I'll switch to me to trade in just a second. I'll show you what I mean. Okay, so as you can see, there's lots of volatility during the London hours, and then obviously as the US hours goes on, the volatility decreases dramatically. When the US closes, we have a very, very low volatility during the Asian session, and that's when you can use much tighter stop losses. So this volatility analysis section in the AutoCharge Web App is very important for you to try and plan how you're going to be trading. So let me quickly switch to my Euro-USD graph. I'm going to just erase all my drawings, and I'm going to quickly open a Euro-USD graph. I see we're in profit on one of our trades and almost even on another one and down on one of the others. Anyway, let's not worry about that. Let's just say I want to trade Euro-USD, and what I'm going to do is I'm actually going to close the AutoCharges because I'm talking about stop loss levels now, right? Okay, so I expect Euro-USD to trade in the region of kind of 35, 40 pips in the first hour of the day, right, of New York, okay? So let's look at what that looks like, right? So from a current price level of 1784, 1794, 1805. Let me try and find that. There we go. So somewhere that's about 20 pips up, and I'll kind of take a guess of 20 pips down, right? That's where we expect the price to be in the next hour or so. Okay, so the thing is this, let's just say you're using some other kind of technique, right? And you want to set, let's say, a long position on Euro-USD, right? And you want to set your stop loss at this level, but let's say you're going to go long. Let me draw that in. Let's say you want to go long, right? And this is where you want to set your stop loss level, right? So what does that look like, right? So what does that look like? So I'm going to bring up my calculator, right? So the current price is 1.1790, and our stop loss that we've kind of drawn on our screen is 1.1771. It should be about 20 pips, right? So I'll guess the drop, around 20 pips, right? The market's moving a little bit. But 20 pips at a standard account, that's $10, but that's $200, right, that I could be risking. So what is the way for me to only risk $100 with the stop loss? And the answer is that what you should be doing is you should be trading instead of one lot volume, you'll trade 0.5 lots in volume, right? Because then you'll only lose... Well, you won't lose, but yes, if it goes against you, you'll only lose $5 for every pip instead of $10 for every pip, right? So the way to trade correctly is not to adjust your stop loss closer because you can't afford to lose that kind of money. What you should be focusing on doing is adjusting your position size, right? And so this is why this auto-challenge volatility analysis is very important for you because even if you don't use the auto-challenge indicator, right, or the expert advisor on your chart, you can still look at this volatility analysis per hour of day graph, and you can understand where you expect the price to be and how much you expect to trade before you set your position size, right? And then so set your exit level according to your strategy, the same way we did with all our graphs, right? Remember, I set it according to turning points and price levels. That's my style of trading. You could be trading moving average stop losses or parabolic SALRs or stop losses. The point is, wherever you set your stop loss, once you have planned your trade, then work out what the put value is for what you're trading. If you don't know how to work out the put value, you know, you can just use about between $8 and $10 for a perp. And then you make sure you take the appropriate position size. Okay. So that is very, very important, and I urge you to do that all the time with your trading. All right. And so with that, I kind of want to conclude, but I want to see if there's any questions that have come up. So there is, well, I'm not quite sure how to pronounce that name. I'm not sure how to pronounce that name. So, yes, different brokers use different data feeds. So obviously your audit choice information will be very different depending on which meta-trader platform you use. So obviously today we're talking about Tick-A-Mole, and they have quite a variety of different instruments to trade. And so I'm not sure why you'd be trading with anybody else, but certainly talking about other brokers off the table during this webinar. So I wonder if I could field some questions around what we spoke about today. I'll give everyone just a moment to think of questions. Okay. Normally when there's no questions, it means I gave the most brilliant presentation ever. I see a question coming to you from Cibonello. Cibonello asks, sorry to take you back. Please help with filtering the auditory indicators. You showed it last week. How do I set that up? Okay. I'll quickly recap on that. Again, just to let you know that this is my trading style. You can find your own trading style. What I do is I do the following. I'll just wait for that moment to come up. I click on this little filter button over here. Come on, what a child has to load. Sometimes takes a little bit of time to load. Not quite sure why. Okay. There we go. So my filter button came up. What I do is I only trade, let me circle that for you actually so that I can, everyone can see, I trade completed child patterns and I trade break out and approaching key levels and I only trade the higher time frames. Okay. That gives me a reasonable set of results that I can trade. Also, all the results that I am seeing here have their correlating performance statistics. Right? So if you click on this little world icon and you copy and paste this performance stats URL into your browser, then you will get performance statistics for those different types of trade settings. Trade setups that I showed you there, right? The complete, the breakout, the breakout child patterns and the breakout and approaching key levels. Okay. And that one approaching key level that I showed you earlier has one of the highest statistics probability of success based on past performance. So that was, I think it was this EuroJPY example. I wonder if we're making money on that. That is the one we're making good money on. That, in fact, has the highest probability of success. EuroJPY will quickly bring that chart up again. Let's see what that looks like. So that's that example that I traded over here. Right? I traded that long. Okay. So, again, I hope I have answered your question from last week about how to filter. Okay. Well, that being said, doesn't look like there's any more questions coming through. I hope you've enjoyed today's webinars. If I have to leave you with one rule, it is always look at historical value, historical prices to see where the significant levels of where to set your stop losses take profits. Secondly, make sure you take into account your expected volatility. And third, never adjust your stop loss to manage your risk. Set your stop loss where your trading strategy tells you to set your stop loss. The way to manage risk is by changing your position size. Okay. Remember that. Okay. Thanks, everyone. Enjoy the rest of your evening or your day, wherever you are in the world. Bye.