Need help with calculating stop loss

i have been trading for past 5 months and i am having some doubt on placing stop-losses for my order.
i looked up in the internet and i saw the 2% risk rule so i keep my stopp loss at 2% of my capital but that stop loss is being hit most of the time. so lately i am trading without stop loss . so far it was good but last thursday almost half of my capital was gone since i was trading without stop loss. my capital is 50k. for these volatile market condition what would be the ideal stop loss for trading nifty weekly options? please suggest how you people manage your risk. Thanks in Advance

Protecting your capital is the most important thing.
There is no fixed rule of 2% like that.

suppose your daily loss limit is 3k and if you face 5 loss continuously, you will lose 15k which is around 30% of your capital.

so you have to decide your losses in such a way that drawdown is minimum for every trade.

And please use stopless in this kind of times or else your capital will be wiped before you know it.

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Taking no trades is trading in itself.

In volatile conditions like this Stop-Loss getting hit often is normal but that doesn’t mean you should stop following your risk management rules just for sake of trading, maybe you should stay on sidelines and wait for volatility to reduce but not using Stop-Loss to trade is really bad decision.


Start with at least 1lakh capital so that you can get decent trades with good R:R.
with 50K and 2% SL, Backtest and check the win:loss ratio, you will get it.

Hey @Sheik_Meeran
Few weeks ago you said you will be playing with currency options.When you started index options.
By the way
Which side you are trading?
Buying or writing
Fixed stoploss won’t help in any climate.
You have place sl based on volatility, support resistance…
Read varsity you will get bigger picture

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yea a friend of mine thought me some strategy and setup to trade in nifty options. i’m currently buying options.

Option buying is very risky. Try in Nifty Options but not BN options as it is highly volatile. tghere is time decay so close trade every day. Futures is better than Options. But that too risky as per my trading history.

it is 2% of the stock price
use small quantity …increase only if trend is clear

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You can use volatility to set up stop losses like 1.5 to 2 times volatility.
Here is what I do, I don’t use stops to get out of trade but to protect myself against large move. So my stops are comparatively larger.
Staying or getting of the trade is based on market conditions.

Option is the best comparatively futures. Options have a many strategies. But futures have not any strategy. We can apply limited loss strategies in option. But futures is only unlimited risk. If who learn option strategies and option greaks then they will make money in small risks

Stop loss is not a standard one. You buy above support then you fix your stop loss below the support. Same thing You buy below resistance then you fix your stop loss above the resistance. First you learn about pivot points. It’s help for your trade in intraday.

i use wide stop loss about 2% from cmp to accomodate wild swings

For a good stop loss, you need a good entry. If you think, the market is about to go up, try to enter on a red candle and vice versa, generally a good stop is few points above/ below near swing high or low.