So, I seem to have a problem, I have a trade plan, hybrid trading, check market sentiment before start, check the calendar, stick to the system. Make small profits ( in comparison to the losses I get).
Don’t get losses frequently but when I do it’s kind of more than what I achieve on the profit side.
And advise how to improve that?
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What happens to price after your stop is hit?
What happens to price after you took profits and closed the trade?
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Losses: price has a big change suddenly then correct ( news comes out and market moves)
Profits: nothing major because if parameters change according to trading system then I exit
you have to be more consistent and have more discipline concerning your TP and your SL
always set them with the same parameters : ex 1% risk and 2%TP. just let the market fluctuating. if it hit your sl or TP doesnt matter as long you have a good wining rate
actually you just close the trade by feelings, thats why you are grabing less profit than you loose
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For your losses there could be several issues/solutions -
trading ahead of scheduled news
stops too tight
your particular broker’s spreads too wide around news and events like market openings
not allowing for normal volatility (consult the ATR in relation to your SL distance
trading pairs which are too volatile
time-frame too short
For your winners, of course a trade should be closed if it deteriorates from your ideal set-up. But consistent bullish price action doesn’t often flip in 5 minutes to consistent future bearish price action without some TA indications.
In the same situation. Maybe it’s because of end of year ?
Back testing on Trading View theres some good videos an YouTube on how to do it
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I test is manually
already did, thanks
Are you using stop loss correctly? That could be the reason behind your massive losses. Don’t place it very far from your entry price. Maximum 10% is the best position to place you sl.
You can work on your work discipline and strategies to get a better outcome of your trades.
Hi, can you provide a “plain text” example applying 1% SL (Risk) with 2% TP?
Let’s assume 1.00 Lot in EURUSD pair… can you?
Cheers DN
Well, it all depends on what kind of risk to reward ratio your strategy has. If your strategy has a positive RRR, then, its simply a matter of lack of discipline on your part. You are tempering with your trades. However, if you are disciplined enough to not temper with your trades, then you shouldn’t be be surprised, because that is your strategy. (high win rate, low RRR)
I was and still is in the same situation. However, I have reduced the losses. I have a high win rate but when losses hit they hit hard. I’m an Algo trader. I back tested 5 years of data and refined my stop loss strategy. I came to the conclusion that the below steps will improve the results….
- No hard stop loss
- *Close trade after a certain number of candles.
- *Trade multiple instruments. Win in an instrument cover the losses of other.
- Vary lot size based on back test performance for each instrument.
- Weekly and daily circuit breakers
- Bottom line is, you will have to consider Forex trading as a long journey and not a destination. If you trade with this in mind, losses will not affect your trading.
If interested, you can look at my trading journal here.
*reduced losses significantly.
You should develop a clear process of identifying when you’re wrong so you can cut the losses quickly. You’re proly allowing losers to run longer than they should, and cutting your winners too soon. Journaling your trades is the first step to look at patterns in both the losers and the winners. Hope this helps get you started.
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