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Thread: Stop Loss

  1. #21
    Join Date
    Mar 2015
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    28
    Quote Originally Posted by JamesBr View Post
    I never use SL, instead I put averages up/down. I am 99% sure that the TPs an SLs are visible to brokers. It happened wayyyy to many times that my TP wasn't filed by just 1-2 pips ... for the same reason I suspect they can see orders and hunt them (Stop hunts)
    I totally understand what you are referring to. When I started trading with ironfx I felt like my take profits weren't getting hit whereas my stop losses were. I spoke with them and they explained why this was happening. Basically what they told me was that a buy position closes on the bid price and a sell position on the ask price. As a result if you have a sell position take profit then you must wait for the ask price to hit your take profit and not the bid price. Once they explained it to me and I checked they were right. I personally always use a stop loss and take profit.

  2. #22
    Quote Originally Posted by Jack M View Post
    I totally understand what you are referring to. When I started trading with ironfx I felt like my take profits weren't getting hit whereas my stop losses were. I spoke with them and they explained why this was happening. Basically what they told me was that a buy position closes on the bid price and a sell position on the ask price. As a result if you have a sell position take profit then you must wait for the ask price to hit your take profit and not the bid price. Once they explained it to me and I checked they were right. I personally always use a stop loss and take profit.
    That what I said, but put into english :-)

  3. #23
    Join Date
    May 2015
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    Cebu,Philippines
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    Yes, I have coded this algorithm to work automatically and not babysitting my trades.

  4. #24
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    Dec 2013
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    Quote Originally Posted by MarkBucks View Post
    Personally, I don't use Stop Loss anymore. It's a way to lose money if you have small funding. Stop loss is suitable for big players who have millions of dollars in their account. They can put wider stop loss that can't easily hit by market ups and downs. Their trades can breath and withstand market's unpredictability.

    In my case, I use my defined algo to manage my losses and turn into winners. This makes me consistently profitable then. I don't worry if the market direction turns against my trade because there's an algo that could handle efficiently 100% of the time as long as the market moves.
    What do you mean 100% of the time? It is successful 100% of the time? Also, how long has this Algo been running, I'm curious?

    Personally, stop losses has nothing to do with small or big funds, it has to do with my own strategy and how precise it is. I use it 100% of the time to great effect.

  5. #25
    Join Date
    Oct 2014
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    2,664
    Quote Originally Posted by MarkBucks View Post
    Yes, I have coded this algorithm to work automatically and not babysitting my trades.
    Do you have a myfxbook to back this up?

  6. #26
    Join Date
    Apr 2015
    Location
    Indonesia, South Sinai, Netherlands
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    Quote Originally Posted by MarkBucks View Post
    Personally, I don't use Stop Loss anymore. It's a way to lose money if you have small funding. Stop loss is suitable for big players who have millions of dollars in their account. They can put wider stop loss that can't easily hit by market ups and downs. Their trades can breath and withstand market's unpredictability.

    In my case, I use my defined algo to manage my losses and turn into winners. This makes me consistently profitable then. I don't worry if the market direction turns against my trade because there's an algo that could handle efficiently 100% of the time as long as the market moves.
    Not using Stop losses is possible but the risk is not limited.

    The popular scenarios are:
    A) if you are using a huge account with small positions (every trade is less than 0.01% of your capital) than i understand your ability to survive when the market moves against you, you could even average losing positions (not a good habit) and cash in your profits during the counter move. BUT let's say you went long on a pair/index at the year high and that was the last time you saw that price for the next x years; even if you keep averaging your losing position with small baby volumes (0.01% of your capital per trade) there has to come a time where you say: ok, lets cut and loose, (and your loss will still be limited assuming your exposure is so minimal).

    B)Hedging on the same pair at the same price at the same time. Which may work a while, whatever direction the market goes, you eventually lock in the profits at a major Support/Resistance level and then exit during or after the correction/pullback/rebound (to minimize your loss or eliminate it in case it goes back to break even). Even though you eliminated the risk of your stop being hit, that same risk exists again once you wait for the correction, you need to have an opinion on the market, hence heding is useless. The risks here are: you pay two spreads, you have to eventually take one side of the market. it needs a lot of focus and dedication. It would be wiser to hedge two different pairs with different RS (example GBP/$ and GBP/Yen)

    C) non margin trading/investing, and i m talking here about fundamental hedge funds who buy and hold for a long period of time. this is totally different to Forex.

    I m still curious to know your algorithm and does any of the 3 scenarios apply on your system?

    Amro

  7. #27
    why don't you give us an outline here, with some trading proofs? Is it because really you are doing nothing more than either harvesting email lists, or peddling some form CPA offer, which people have to go through before they get to the video which will probably take 20mins to watch and could be summarized in 4 words "Buy Low - Sell High", by all means call me cynical, but if you were really giving away a free video you'd put it on youtube.
    Last edited by Pipzilla; 06-01-2015 at 03:09 PM. Reason: Clean up

  8. #28
    Join Date
    Oct 2011
    Posts
    1,183
    Quote Originally Posted by MarkBucks View Post
    Personally, I don't use Stop Loss anymore. It's a way to lose money if you have small funding. Stop loss is suitable for big players who have millions of dollars in their account. They can put wider stop loss that can't easily hit by market ups and downs. Their trades can breath and withstand market's unpredictability.

    In my case, I use my defined algo to manage my losses and turn into winners. This makes me consistently profitable then. I don't worry if the market direction turns against my trade because there's an algo that could handle efficiently 100% of the time as long as the market moves.
    Is the algo on offer? Care to share it with us?

  9. #29
    Join Date
    Apr 2015
    Location
    Indonesia, South Sinai, Netherlands
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    Quote Originally Posted by MarkBucks View Post
    Yes, I have coded this algorithm to work automatically and not babysitting my trades.
    Is this your algorithm?

    Recovery zone trading: You basically enter at say $10 Long with 1 Lot. Price goes down to $9.95, instead of a stop loss you place go short at $9.95 with 2 lots. Price goes back up, you re-enter Long with 3 lots....your recovery zone is 9.95-10.00. You keep doing this till the price eventually breaks away and starts trending. Its is a good system but risky if the market is ranging, eventually if things dont go your way, you will have to either neutralize it or exit all trades (equity stop) due to over exposure.

    You dont need a stop loss for two pair hedging either, and it can be a profitable long term strategy, Good luck.

  10. #30
    Join Date
    Nov 2011
    Posts
    321
    I not use stop loss every time when I trade . If I am not watching my trades I use this tool so that I do not make unlimited loss. I set on pips where I +can easily bear loss according to my capital.

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