Hey @asmstudio7, It’s one of the biggest debates in FX, to use a stop or not to use a stop…
Traders should understand that the criteria to exit a set position does not always have to be a Stop Loss… Unfortunately many don’t.
You can use the RSI or CCI Indicator value to exit a position such as demonstrated here.
Or the use of Hedging to recover from a losing position as demonstrated here.
All of these exit trade strategies require no stop loss calculation or particular value on a chart…
So you really have to think about and test what type of trade exit strategy is best for you… Demo any strategies that appear to work, the really successful systems won’t get much airplay for a number of reasons…
Price Action is constantly whipsawing on an hourly, 4 hourly and daily basis… it is an algorithm designed to have you on the wrong side of the market all day long…
If you rolled a pair of dice to choose market direction (Experiment has been done many, many times, See FXFactory threads) with a 1:1 maybe even 2:1 RR, you would be stopped out (~70-80%) more times than you will win… that alone should alert you that all’s not what it seems…
The FX market is a mathematical probability void in space and time…
The close mindedness in these forums is breathtaking… the “that’s how we have always done it…” or “that’s how everyone does it…” mantra is possibly the major contributing factor to the high loss ratio incurred by retail traders…
Over on the 25% per month thread, the cries of “Ohh, it’s impossible…”…" “cannot be done…” is such a cop out by close minded or incompetent traders… the exercise is averaging 50% per week…
The most profitable day 17th October was using a grid based hedging strategy…ie: no Stop Loss…
There is other threads here in BP that are achieving awesome results by using a well thought out strategy that don’t involve SL or TP’s…
Which opens up another point… should you use a TP??.. I know my style locks in profit once achieved, but I also miss the next 10, 20, 30 pips of some continuing trends… this is when you SHOULD use a stop, moved inside the trade to guard profits… ie: Break Even…
So you really have to think about what type of trade exit strategy to use… Don’t take what I have said in this post as gospel or what anyone states in a forum of any kind… think for yourself…
But never, ever say it cannot be done!!