Stops on any trade, especially the very volatile & -3x leveraged SOXS, will vary depending on one’s entry price (or average price, if scaling in); their price target (or targets, if planning to take partial profits if/as some of the earlier targets are hit, or even reversing to game pullbacks along the way); and their preferred R/R (risk-to-reward) ratio.

In the case of SOXS, based off the most recent price targets, which I believe where share in one of the recent videos on the 60m chart below, AND assuming an entry at the high-probability sell signal I was waiting for with solid breakdowns & daily closed below the uptrend lines on SOXX as well as XSD & QQQ (which came last Friday, May 15th), AND assuming that one’s price target(s) align with mine, then one would take the profit potential percentage (which I provided on the chart below) & divide that number by the antecedent (i.e., the 1st number in the ratio, e.g. “3” for a 3:1 ratio) to determine the stop loss % below their entry price or average entry price.

Some traders might opt for a more aggressive stop above the recent highs in SOXX (or lows in SOXS, either on an intraday or closing basis. Every trader is different, with different risk tolerances, price targets, stop allowances, average cost basis (entry price) on positions, etc.

In the case of SOXX, I’ve pointed out more than one objective short entry recently, so there isn’t a ‘one-size-fits-all’ type stop, especially for the 3x leveraged SOXS, which is prone to price decay due to the leverage.