Stop Loss on Breakouts - ORB
I’m currently going through Qullamaggie’s Swing Trading School and I’m struggling with stop placement on 15-minute and 1-hour Opening Range Breakouts (ORBs).
Often, the breakout candle is massive with a huge volume spike. I am swing trading a $25,000 account and strictly keep my risk to 0.5% per trade ($125 risk). Because the breakout candle is so wide, putting my stop at the low of the candle forces my position size to shrink so much that I can barely buy a few shares.
Has anyone tackled this problem? How do Qullamaggie, Stockbee, or other reputable momentum traders handle this? Do you drop down to a lower timeframe to find a tighter stop, or do you just accept the tiny position size.
Used Ai to frame it better as english is not my first langauge.
Thanks.