Hereâs what you need to remember about setting stop loss to break even:
Yes you will be stopped out and then see your (former) trade work out beautifully many many times. But, how do you know it just wonât go against you if you didnât have that stoploss there? Plus, you can never go wrong with having only winning/break even trades.
I wish for myself that every trade I went into was timed right so that I would be in the money a few minutes later and that I could lock in my stoploss at slightly above break even. Worst case scenario: 100% profitable trades, many small profits. Best case scenario: 100% profitable trades, many huge profits with stoplosses following at a distance.
It doesnât get better than 100% though!! And the better your entries (timing-wise), the fewer times you get stopped out at breakeven.
I agree with you 100% on that I will work on using multiple lots and try to perfect the timing to increase profits but one thing is for sure I will never not use stops.
Itâs a Java based application from Oanda FX game (for demo play).
Very recommended.
One more thing, is there a way to save the chart, not to prepare it newly everytime after every logout out of the system?
See how ADX lines turned positive, blue above red.
SAR was delayed (It didnât came with the signal candle)
The correct entry would be 1.3144, when SAR agreed on the trend.
Closed 20+ in demo
and 21+ in demo for Cable
It can go up more, itâs your own decision.
I want to add that using Heikin Ashi makes trends shape easier and market waves as well. If you made a deeper look you can tell me when the market wave is ending from the looks of shadows and candle colors.
(Often, there is a series of candles in one direction)
Picture for recent newest trade,
I wish you caught it.
Gave short altogether at 1.3145 and dropped to maximum of 1.3136.
Kidding me, only 6+ pips then turned long signal to give nearly 25+ pips.
I canât resolve this problem guys. You should use your discretion to open/close trades.
A trade would give from 1+ to 100+ pips.
A stop wouldnât help you in the case, but if you open 4 lots, close one lot every 5pip profit. then again, some trades are too generous and give 50+ or over.
Use little stoploss, we must respect risk-reward ratio.
If you found a method for SL and TP please help us.
What is Heikin Ashi? I read where you mentioned it in an earlier post.
Regarding where to place a SL; itâs really a difficult decision. In my opinion, this is one of the two items that makes the art of trading lean more towards gambling than investing.
When I comtemplate theories of where to place a SL my mind starts spinning. I donât want to place it too close and have it trigger when the pair may have just been going through a few of itâs wild movements before heading off where I want it to go.
On the other hand, if Iâve stepped into a trade that is destinded to take off in the opposite direction (determining the direction a pair will travel is the second item that puts trading into the gambling arena,) the loss is as large as where the SL was placed.
To summarize; for me two clouds hang over my head 1) which direction a pair is really going to travel, and 2) where should I place the SL?
I like to type out my problems, it causes me to review my issues.
Heikin Ashi is a candlestick pattern that makes market trends look better and easier to identify (ofcourse in trending markets), If you see any picture above, there will be a series of red candles or blue candles in a row forming what is like a âTrendâ or a âWaveâ.
More on Heikin Ashi (from investopedia)
The Heikin-Ashi technique is extremely useful for making candlestick charts more readableâtrends can be located more easily, and buying opportunities can be spotted at a glance. The charts are constructed in the same manner as a normal candlestick chart, with the exception of the modified bar formulas. When properly used, this technique can help you spot trends and trend changes from which you can profit!
I share your problem. Stoploss is the biggest challenge of forex, may I tell you I got 2 trades stopped out at -30 when S and R breaks only to see trades went my favour after hitting SL to make around +40?
Itâs a serious challenge. If we do not use stoploss, that can wipe out accounts. If we use stoploss, we need to know that itâs really the right point to-stop-loss.
So placing your trailing stop and stoploss or any stop order is very big decision. Indeed, while the method gives you all accurate trades, one trade last for 10 pips, and another for 100 pips. You canât know.
From my experience, the trade wonât fly through my direction just when I open it, and that makes putting a SL harder.
Yes, we suffer the same problem. After reading all of Elangâs posts it seems his method makes deciding where to place the SL easier. However, when someone takes you by the hand and feeds every move to you with explicit directions it makes it all seem much easier than âwhen you find yourself left home aloneâ to figure it out on your own. The guy is good though, really good. Canât believe heâs only 20.
Search for the Holy Grail. There may not be a holy grail but it doesnât mean that you canât look for it. Continue to explore systems, indicators, and anything else you can get your hands on. It will help you in developing as a trader.
I had more stop losses than take profit with this system. Maybe this was just bad luck, or I put stop losses to close (on 10-12 pips). I donât know, I will try more with this but, if I continue to lose I will abandon it. If you have some advice, I would appreciate it.