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Trading without stop loss 87 replies

Stop Loss vs. Hidden Stop Loss 26 replies

Trading without a stop loss! 142 replies

Is anyone successful using a large stop loss? 6 replies

Trading without stop loss? 20 replies

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successful trader without stop loss?

You can use large stop loses if your leverage is small (0.01-0.02) etc. I do that but I am in front of the screen all the time, because my job allows me to that. But you need planned entry (follow the upcoming news, charts, trends, indicators, etc.)

My two cents,
Yilmaz
Quoting Xaron
I use them rarely due to the fake breakouts in FX. It would be great if you could set a stop like "if the price closes(!) below the support at the daily, close the trade". As those orders are not possible, I do it manually.
or close if total of positions hits floating equity Breakeven or whatever... thatd be a cool order
Quoting jr888
Hey guys,

I think it's my first post since some weeks after the first time joining this forum.

I want to know if someone ever knew or met traders WITHOUT stop loss who are successfully winning their trades.

What do you think?

George soros, or traders less popular than him...
I'll re-post what I wrote on a similar thread about this -

"I have tested stop losses on all the trading system I've made http://www.myforexdot.org.uk/FreeTec...ngSystems.html I can tell you that in my experience a stop loss (unless it's really large, like 10 * ATR) degrades the performance of any trading system. That's just a statistical fact. In my opinion you can trade without stop losses if you're not using any leverage."
  • Post #24
  • Quote
  • Edited 8:58pm Jan 15, 2010 6:36pm | Edited 8:58pm
Quoting Moody
I know a few traders who never use stop losses.

The catch is that they know exactly where they will exit the trade or what piece of news or fundamental information will signal that it is time to exit a position. In other words, they care more about the risk side of the equation than the reward side of the equation.
If an exact exit position is known or specified, where is the logic in not placing a hard stop there?
"If The Fool persists in his Folly he will become wise." - William Blake
  • Post #25
  • Quote
  • Edited 8:53pm Jan 15, 2010 8:32pm | Edited 8:53pm
Quoting Davidee
I'll re-post what I wrote on a similar thread about this -

"I have tested stop losses on all the trading system I've made http://www.myforexdot.org.uk/FreeTec...ngSystems.html I can tell you that in my experience a stop loss (unless it's really large, like 10 * ATR) degrades the performance of any trading system. That's just a statistical fact. In my opinion you can trade without stop losses if you're not using any leverage."
I demo candles and TL's on the 1', with occasional TL's from other TF's. The TL's trace a chart area and perhaps one to several trends after the current one, while candles connect and produce a trade from these TL's. Candles also take a lot of work to concentrate on during faster sessions, to figure their shapes on the 1'; so, TL's help reduce the effort.
Anyhow, choosing a reason that explains a very strong move and then trading a very small portion of that trade, makes up for all the better or conflicting reasons I might have missed. I favor significant turns to discover primary reasons, so that if I'm very wrong, I take the stopless loss, which is bigger than most traders'.
If I do understand, then I do a lot of trades in a row, since any one chart area tends to have the same reason carry through for derivative reasons to borrow from. These trades remove much of the last big, stopless loss.
I use email price alerts instead of Stop Losses. That way I have the time to analyze the situation instead of having a computer react for me.

Just a thought, here's the indy if you want:

You can select an instant email alert, or select TRUE for an alert only after the candle closes through the designated level.

Kudos to Oromek who coded the email alert
Attached File(s)
File Type: ex4 $$Price ALert_instant$$.ex4   4 KB | 198 downloads
File Type: mq4 $$Price ALert_instant$$.mq4   4 KB | 199 downloads
Quoting Moody
I know a few traders who never use stop losses.

The catch is that they know exactly where they will exit the trade or .
If they know exactly where they will exit the trade, why not have a stop loss in place?
Quoting Moody

Most of the traders I know who don't use stops are those who are trading in markets where the size they are trading is a significant portion of the daily market volume. .
So what are these traders? Huge hedge Funds or IB's ? How big are they in trading size?
I rather follow "Plan Your Trade and Trade your Plan" which includes Stops, Take-Profit, and sometimes even Trailing Stops is required.
Quoting jr888
Hey guys,

I think it's my first post since some weeks after the first time joining this forum.

I want to know if someone ever knew or met traders WITHOUT stop loss who are successfully winning their trades.

What do you think?

George soros, or traders less popular than him...
To keep it simple, your better off setting a hard stop and no stop limit order.
2 ways I looked at this question

-Trade without a stop loss meaning a method to avoid broker stop hunting. You could use a mental stop

-Using hedging to avoid losses
Quoting The Fool
If an exact exit position is known or specified, where is the logic in not placing a hard stop there?
Because the people at their Forex dealer can see that stop and they don't want it known. Keeping their cards close to their chest.
I seldom place a hard stop. Most of the time I have a mental stop. It can vary from a couple of pips to 20 or 30 pips. I also try and babysit every trade from start to finish. If I can't for some reason, I'll place a hard stop. Very rarely though.
Quoting hijackxx
I rather follow "Plan Your Trade and Trade your Plan" which includes Stops, Take-Profit, and sometimes even Trailing Stops is required.
Yes. "Plan Your Trade and Trade your Plan"
  • Post #35
  • Quote
  • Edited 9:43pm Mar 1, 2010 9:21pm | Edited 9:43pm
Quoting hanover
. Survival through risk management must always be a trader's uppermost priority. Ignore it at your peril.
Well said, Hanover. Fully agree with your post.

It also depends on what you define as a "stop loss", though we are here getting outside the realms of what is going to be relevant to the majority of traders in this forum:

For example, on some trades (not all) - I use a stop time rather than a stop loss, and maintaining the discipline to exit at the designated time if profit target is not realised is key to my risk management - this is relevant to trades where I aim to make profit from the 'hedging' of 2 or more different instruments that are 'divergent' at the time of entry and are expected to 'converge' within a specified time period.

The best advice for a new trader though, would be never trade without a stop loss, and never ignore your stop loss - and of course to accept that controlled losses are a normal part of your 'business operations.' It is fashionable with "low volatility" instruments to leave loosing trades open "until they return to profit", but there are some VERY dangerous assumptions built into this trading strategy that will most probably one day bite you on the arse...
Quoting MktScape
After listening/attending to a number of professional traders seminars and reading a dozen or so top of the line trading books my conclusion is: "If a trader is thinking about going wihtout using stoploss then their trading carrier is indeed over before it even kicked off ...i.e. its a matter of time before they bite the dust"!

Dont even think about going wihtout stop loss otherwise market will teach a very painful lesson sooner or later.
can u recommend how many pips for stop loss on manual trading? all this while im on EA n not bothering the functionalities of Stop Loss. TQ.
yes i know, but they use very low leverage.
Where are those fake 'real' traders who trade without stoplosses.I dare you to trade without stoploss again.With EuroChf falling 3000+ pips r.i.p to your forex accounts.i wish swissy rally got you naked with no SL . lol .it would be a lesson well learnt
we should know that forex is a very high risk, and therefore we need to minimize the risks well to profit in forex. One of them is to use SL when trading. Trading with SL then our account will be minimized of risk. and will provide maximum results when trading
Quoting jr888
Hey guys, I think it's my first post since some weeks after the first time joining this forum. I want to know if someone ever knew or met traders WITHOUT stop loss who are successfully winning their trades. What do you think? George soros, or traders less popular than him...
@jr888 I know several traders that does not uses stop loss, they rather hedge the losing pair and collect swap, it is mainly due to their trading style and risk tolerance.
militarymonk
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