DislikedYou worry about black swans as if they happen every other week or month, if it happens it will happen and thats it. To me a pro trader is one that can grow to huge accounts from small deposits consistently, so my "pro trader" would just restart and do it again.Ignored
Pro traders who do not use SL, What about Black Swans?
{quote} CaptainCobraVery wise! so are you speaking about trading additional account %20 to 25 of the main account then its profits are transferred on weekly basis to the main account with same broker.
You could fund the account with enough margin to cover one trade idea.
Also, I've heard of traders having the amount match the monthly max loss.
And finally, when you get hit with a margin call in many cases you would have some change left in the account when everything closes out
- #28
- Oct 24, 2018 5:01pm Oct 24, 2018 5:01pm
Hello Traders, I have a question for pro traders who do NOT use stop loss in their trading. They are usually into consistent profits especially with their PRO MM. However, I never understands what their protection against significant events, For example 9/11 attacks, Tsunami, War or SNB EURCHF drop back to 2015 (2000 pips)! Are you using still hard stop like %20 of your account? or any other way of MM? and Please this thread is not to discuss whether or not to use a stop loss for trading. Thank you.
The SNB wasn't a total black swan event. They were giving their speech on what they were going to do. There was some speculation they'd raise the amount of currency they'd stash in their vaults. But they never hinted at it. So when the news release came out, BAM! It hit the markets like a brick to the face. That's why it's always best to avoid high impact news releases, as well as currencies that are caught in tense political situations like the GBP and Brexit. Look back at the GBP/USD back on October 7, 2016. It dropped almost 1160 pips when Theresa May said "it will be a hard Brexit". I saw someone on this site talking about how that alone blew out the account he had spent the past 3 years building up. THAT was a true black swan event. She just went on TV and said that. No scheduled news release for the country or anything.
If you want to hold trades for weeks on end through high impact news releases, while not using a stoploss, you'd have better luck playing russian roulette. A stoploss exists to protect your account when the market doesn't go your way. You don't use it to minimize losses. You control your risk before you enter your trade. If you are insistent on not using a SL, then choose a leverage of 10:1 or less, or develop a really good trigger finger for manually closing your trades.
- #29
- Oct 24, 2018 6:30pm Oct 24, 2018 6:30pm
- Joined Feb 2017 | Status: Trader | 1,365 Posts
{quote} A lot depends on your style of trading. You said you'll hold trades for 1-3 weeks. I usually hold my trades for around 1-3 hours. Over 95% of my trades are done the same day that they're opened. In the past I haven't used a stoploss, since I only open and close trades when I'm at my terminal. Now that I'm going to be managing some funds for a few family members, I'm going to implement just "just in case" stoplosses on my trades. Nothing too close to my opening position that I'd get taken out too early, but far enough away that in case some...
"The fun is in the hunt. Not the kill."
Hello Traders, I have a question for pro traders who do NOT use stop loss in their trading. They are usually into consistent profits especially with their PRO MM. However, I never understands what their protection against significant events, For example 9/11 attacks, Tsunami, War or SNB EURCHF drop back to 2015 (more than 3000 pips)! Are you using still hard stop like %20 of your account? or any other way of MM? and Please this thread is not to discuss whether or not to use a stop loss for trading. Thank you.
