Once 12 pips up is it a good idea to Move stoploss to breakeven? | Forex Factory

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Once 12 pips up is it a good idea to Move stoploss to breakeven?

  • #1
  • First Post: Apr 3, 2008 12:58pm Apr 3, 2008 12:58pm
For intraday trading once 12 pips up is it a good idea to move stoploss to breakeven (the price in which you bought/sold). I'm talking about pairs with spread less than 4 pips.

1) Is this a common technique used by experienced day traders?

2) Also to all you pros what is your most consecutive wins?

My record is 8. I know of someone who has had 70+ consecutive wins and before that it was usually 25-30 consecutive wins. His max Consecutive losses was 4. All this between January up until beginning of March 2008.

Regards,

Phil GMT

(Be prepared for more dumb questions)
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 19.7%
  • #2
  • Apr 3, 2008 2:46pm Apr 3, 2008 2:46pm
Even with a 2 pip spread chances are that you'll get stopped out in volatily markets.
  • #3
  • Apr 3, 2008 8:29pm Apr 3, 2008 8:29pm
Quoting Phil_GMT
For intraday trading once 12 pips up is it a good idea to move stoploss to breakeven (the price in which you bought/sold). I'm talking about pairs with spread less than 4 pips.

1) Is this a common technique used by experienced day traders?

2) Also to all you pros what is your most consecutive wins?

My record is 8. I know of someone who has had 70+ consecutive wins and before that it was usually 25-30 consecutive wins. His max Consecutive losses was 4. All this between January up until beginning of March 2008.

Regards,

Phil GMT

(Be prepared for more dumb questions)
If it were the EUR/GBP I would take profit
Any other pair and you will probably be taken out.
Also depends on time of day.

27 or 28 consecutive wins back in Aug Sep 07.
  • #4
  • Apr 3, 2008 11:23pm Apr 3, 2008 11:23pm
Thanks for the replies much appreciated...
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 19.7%
  • #5
  • Apr 3, 2008 11:38pm Apr 3, 2008 11:38pm
I believe Steviet had a run of several hundred winning trades. His method is unconventional--small positions with huge stoplosses. But he's found a way to make it work for him.

12 pip stoplosses will get you stopped out often. I think if you tested it, you'd find you'd be better off to just take the 12 pips and bank them, which isn't ideal either. Size your positions in a way that you can use a liberal enough stoploss to allow your trade to develop.
  • #6
  • Apr 4, 2008 6:01pm Apr 4, 2008 6:01pm
I better go and read some of Steviet's posts...from what I've heard, i like this guy already.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 19.7%
  • #7
  • Apr 5, 2008 2:57am Apr 5, 2008 2:57am
That's the trouble with intra-day trading, you need to find the right balance between SL and TP for a given system, taking into account the massive spread (proportionally speaking) when aiming for only a few pips at a time.

I'm still searching for that balance...
  • #8
  • Apr 5, 2008 5:04am Apr 5, 2008 5:04am
Quoting billflet
I believe Steviet had a run of several hundred winning trades. His method is unconventional--small positions with huge stoplosses. But he's found a way to make it work for him.
Therein lies the problem. While Steviet sounds like he knows what he's doing, most people will have a series of wins over a few weeks and then one loss wipes out a few weeks' worth of winnings. I'd rather have a 50% success rate with minimal losses and huge potential gains.
The market reveals who we really are...
  • #9
  • Apr 5, 2008 5:54am Apr 5, 2008 5:54am
Quote
Therein lies the problem. While Steviet sounds like he knows what he's doing, most people will have a series of wins over a few weeks and then one loss wipes out a few weeks' worth of winnings. I'd rather have a 50% success rate with minimal losses and huge potential gains.

This is always the problem with an unmanaged downside. Everything from martingale to grid trading. It's trading on luck, not skill. In a system like this the skill would come in knowing when to close a trade (or when not to open one)... that would be your edge. I suspect most people that run these approaches have never found an edge.

I have a 40% win rate at the moment, but my average loss is around 50 pips and my average win is around 175.
  • #10
  • Apr 5, 2008 7:29am Apr 5, 2008 7:29am
Agreed,

There are plenty of ways to trade this market. Whether its a 30% win rate or 99% win rate doesn't really matter as long as you can stick to whichever method you choose and be consistently profitable month in month out.

The most important thing is to know your particular style of trading inside out and stick with it through the tough times. I remain convinced that there are many methods out there that can be consistently profitable.

My method has certain rules regarding money management, position size, maximum number of positions that I stick to rigidly but apart from that it's discretionary in nature.

Kind Regards
Steve
Quoting shadowninja
Therein lies the problem. While Steviet sounds like he knows what he's doing, most people will have a series of wins over a few weeks and then one loss wipes out a few weeks' worth of winnings. I'd rather have a 50% success rate with minimal losses and huge potential gains.
  • #11
  • Last Post: Apr 5, 2008 11:31am Apr 5, 2008 11:31am
I rarely read a journal - but Steviet's is on my list; if he is trading the major trend w/ MM as a priority- then I can see how he can take a major drawdown and still come out ahead.
In trading, there is no bullshit. You either make money or you don't.
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