Based on your experience trading break outs, and always from a point of view of a trader that can’t operate online, do you recommend using automatic stop loss or use end of day data to see if the day’s closing price is below some mental stop loss, and if broken, exit at next day open?

A:

I would place a stop loss order with your broker so that you are honoring an intraday violation of your stop, not end of day. I do not know what it is like in your country, but ideally, you want to place a buy stop order that, when executed, will place a sell stop order which will execute upon an intraday violation of your stop.