Never Lose A Trade (Theoretically)!!

[xtraction]

Originally Posted by ahgong

I was just arguing the merits of having a larger SL with my wife, shortly after I chance upon this discussion!

I am agreeing that haviong a slightly larger SL due to the fact that many times, I have entered trades that shows a very strong positive sign in one direction. But the trades gets stopped prematurely due to the throw backs prior to the larger move in the direction of the trade.

The system laid out is not very feasible in one sense that it did not cater to trades that go the opposite direction to the point where it will margin you out of your account.
Using the recent movements in the USD/JPY as an example. Earlier in the month, when USD/JPY was trading in the 93 dollar mark, who would have been able to see the slide from the 93 dollar mark down to its lowest of 88.6?!?

If using the above system, those with small accounts would have margined out and suffer HUGE losses.

The trick to managing the SL such that it can buffer the throw back is to strike a balance between the SL and the TP with each trade that you put in.
That is the question that I am still trying to answer. And hopefully, doing some back testing will reveal some answers to tackle this tricky problem of putting in the "right" SL for each trade.

The "right" SL is the smallest SL.

[xtraction]

Originally Posted by R Carter

Forex Assistant

I think its important, nevermore so than on a site such as this that we clearly explain the pro's and con's of each trading strategy. I am sure with a large enough account and small enough lot sizes (and were talking very small lot sizes here compared to account balance) eventually you will find that PA will have retraced to your original entry point and perhaps higher? But how large a draw down and how long you will have to wait for the retrace is in the hands of the Gods.

Placing trades counter to the trend is a very specialised trade best left to the pro's who know what they are doing and why they are doing it. Theres not time enough here to go over such a trade though.

Its almost always better to trade the trend be that short term or long term.

Which trend would that be? Short term? Medium term? Long term? Who decides what the trend is? How do you decide which trend to trade? Most "pros" as in fund managers can't beat the average. What "pros" are you talking about?

[xtraction]

Originally Posted by R Carter

Ha... I'm a pro trader... don't p*ss down my back and tell me its raining.

"I'm a pro trader..."

Does that mean you work for a large institution? Would you please describe a day in the life of a pro trader?

[forex assistant]

In responding to the request that someone is able to reveal the working system of an EA that does not lose trades, I posted proof that there is in fact a no loss trading system that already exist. I posted the url where the proof exists. It was deleted. I will not try to walk a tightrope while trying to encourage people to act civil while looking for new ideas. Ideas come from all over the place and, up until now, I had the highest respect for this website. While my regular forum is fine for research into the new concept of mathematical trading, it gives little stimulation in areas outside mathematical trading itself. I came here to look for new ideas. I am leaving because I perceive that there are none. The restrictions in how we can communicate is too old an idea to avail my research in any way. All offers of helping to develop a no loss swing trading system or to find out if it could be done at all, is regretfully rescinded.

[StockTrader6080]

Originally Posted by forex assistant

In responding to the request that someone is able to reveal the working system of an EA that does not lose trades, I posted proof that there is in fact a no loss trading system that already exist. I posted the url where the proof exists. It was deleted. I will not try to walk a tightrope while trying to encourage people to act civil while looking for new ideas. Ideas come from all over the place and, up until now, I had the highest respect for this website. While my regular forum is fine for research into the new concept of mathematical trading, it gives little stimulation in areas outside mathematical trading itself. I came here to look for new ideas. I am leaving because I perceive that there are none. The restrictions in how we can communicate is too old an idea to avail my research in any way. All offers of helping to develop a no loss swing trading system or to find out if it could be done at all, is regretfully rescinded.

Forex_Assist, don't get too discouraged (or at least try to shake it off).
Robotic trading is new and there are so many crooks out there that if you mention something new, people think you are trying to scam them. Even when you're not selling anything (I have nothing to sell).

Let's face it, mutual funds dropped 50% last year and I heard on CNBC that more funds went into mutual funds this year than in previous years. Go figure!

I have been in "new design" in the work force for the last 30 years and can tell you that MOST PEOPLE are trapped in a world of "IT CAN'T BE DONE".
Telling someone that robotic trading is better than manual trading is like telling them if you turn this cup upside down the contents will not spill out.
Just remember this "most people are un-helpable!"

Happy Trading!

[unlvdating]

Thank You for the post. I love to read interesting post that has knowledge to impart. These kinds of post are very helpful to me to increase my knowledge on different facts about life and other matters. I hope to read more articles from you and in return I will post also my articles in the forum so that others can benefit from it. Keep up the good work!

[R Carter]

Originally Posted by xtraction

Which trend would that be? Short term? Medium term? Long term? Who decides what the trend is? How do you decide which trend to trade? Most "pros" as in fund managers can't beat the average. What "pros" are you talking about?

Its horses for courses i.e. depends what time frame chart your using. I look to the daily for the present PA direction and place trades on the 1h chart. If daily is down I have a short running and hedge the 1h.

The pros I was refering to our interbank traders and rest assured they certainly better 'average'. Yes I work for a very large bank on the trading floor.

[marlin55]

Here is a thrown in:

I want nothing to do with something that is "easy".

I do not mean any disrespect to those that use trading systems. But I feel that by definition a system that really works in the short term will fail in the long run. I guess I am a proponent of the perfect market theory. If it works everyone will do it and it will work no longer.

Setting wide SL's is a recipe for disaster. You may have a 90% success rate but get killed on that 10%.

R Carter has it right. Use your brain. Watch the price action. Be stingy with profits, Always know where you will get out of a losing trade and stick to it. The idea of hanging on until the market turns your loser to a winner so you can protect that winning percentage is deadly. With that strategy 3 months as a trader is generous....

[StockTrader6080]

As long as you believe you can't do it, you're right. YOU can't.