How to Set Your Stop Loss When Trading the IB | Initial Balance | edgeful

In this video, I show you how to set your stop loss when trading the Initial Balance (IB) using actual historical data, and how that same data could have caught an 8-point trade on ES. We walk through the IB (Initial Balance) Rejection Retracement sub-report inside the Initial Balance Breakout report on edgeful.com. This report looks at the sequence in which the IB formed (high first or low first), where price closed relative to the IB range, and how far price historically pulls back into the IB before breaking out. Once you know that only 12.5% of the time price retraces to the 50% level before breaking the low, you know exactly where your stop belongs. What you'll learn: What the Initial Balance is and how to customize it (60, 30, or 15 minutes) How the IB sequence (high formed first vs. low formed first) determines a continuation play How to split the IB range into 0–25%, 25–50%, 50–75%, and 75–100% zones How to read the retracement probabilities on NQ and ES Where to place your entry and stop loss based on the data A real trade example on ES broken down step by step Chapters: 0:00 The 8-point ES trade we're breaking down 0:06 Finding the Buy Rejection Retracement report on edgeful 0:21 What this report measures: IB sequence and pullbacks 0:40 What the Initial Balance is (and how to customize it) 1:02 Splitting the IB range into four retracement zones 1:49 Example: when the low forms first 2:48 Today's setup: high formed first, close in the bottom 25% 3:26 Reading the data: 33% vs. 12.5% retracement odds 4:03 Where to enter and where to put your stop 4:23 How the trade played out 4:52 Wrap up have questions? email [email protected] get started: https://www.edgeful.com/?utm_source=youtube&utm_medium=organic&utm_campaign=2026 Disclosure: Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. this information is not trading advice and should be used for educational purposes only. futures, options, and forex are leveraged instruments, and carry a high degree of risk. past results are not indicative of future returns. your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness, and usefulness of the information. futures and forex trading contains substantial risk and is not for every investor. an investor could potentially lose all or more than the initial investment. risk capital is money that can be lost without jeopardising ones' financial security or life style. only risk capital should be used for trading and only those with sufficient risk capital should consider trading. past performance is not necessarily indicative of future results.