How to rescue a losing position? | Page 11 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Hedge a losing position? 173 replies

Close Losing Position, Set Trailing Stop to Winning Position 2 replies

Take a loss in a losing position or wait for it to turn around? 16 replies

Money Management - Losing Position 5 replies

Attachments: How to rescue a losing position?
Exit Attachments

How to rescue a losing position?

  • #201
  • Jan 2, 2013 5:09am Jan 2, 2013 5:09am
[quote=scfx;6332492][quote=Turveyd;6332017][quote=billytt;6332010][quote=Turveyd;6332002]
Quoting billytt

If the dribble you posted was gold Turveyd you would solve the US debt crisis in one day!

HaHaHa that's classic!
  • #202
  • Jan 2, 2013 5:13am Jan 2, 2013 5:13am
Quoting billytt
question as i cannot get my head around this but what happens if this losing trade turns around and then becomes profitable what happens to the 2 hedge trades????. i am here to learn new ways as well as make my living from trading but something doesnt add up. be good
It is not relevant if it does turn around or not. Question is how the three pairs in the basket behave towards each other.
  • #203
  • Jan 2, 2013 5:24am Jan 2, 2013 5:24am
There is no rescue, only the what -If aproach
You must accept youre loss before you enter youre trade, preservation of your capital .
Trade with good management.
Cut youre losses quick and let youre profit run
The what-if aproach , is to anticipate what you should do if the trade does not go youre way , reverse position from bull to bear directly or vice verse
FX Bunte
  • #204
  • Jan 2, 2013 6:41am Jan 2, 2013 6:41am
Quoting Indrek
It is not relevant if it does turn around or not. Question is how the three pairs in the basket behave towards each other.

i agree entirely, but the original question was ''how to save a losing position'' and in my humble opinion you are adding to it in a vague way. This sort of trading should be left to the actual market makers if at all
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #205
  • Jan 2, 2013 6:44am Jan 2, 2013 6:44am
[quote=FX Bunte;6332921]There is no rescue, only the what -If aproach
You must accept youre loss before you enter youre trade, preservation of your capital .
Trade with good management.
Cut youre losses quick and let youre profit run


an excellent answer, you sound like a trader not a guesser living in la la land
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #206
  • Jan 2, 2013 6:55am Jan 2, 2013 6:55am
Quoting FX Bunte
There is no rescue, only the what -If aproach
You must accept youre loss before you enter youre trade, preservation of your capital .
Trade with good management.
Cut youre losses quick and let youre profit run
The what-if aproach , is to anticipate what you should do if the trade does not go youre way , reverse position from bull to bear directly or vice verse
FX Bunte
Well said also,

Just close it, don't put yourself more at risk with moronic Negdes or Hedges or what ever made me, by going to other pairs your just putting yourself more at risk, what if they buck the trend of the pair which is giving you the issues.

Then if your losers reverses and runs back to a profit, then you close that and your left with your nedges which are deep into the red which cancel out the gains just made, then you have to find a nedge for them to stop them losing any more, not that'll it'll be able to make any then you just go in a endless circle trying to never take a loss, but never ever actually making any actual money.

If a trade is going against you, close it, maybe enter a trade to go the right direction, simple as.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #207
  • Jan 2, 2013 7:31am Jan 2, 2013 7:31am
Turveyd,,, how come your posts were put in a different place. and your right if you lose get out, thats what trading is. and good day to you
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #208
  • Jan 2, 2013 7:42am Jan 2, 2013 7:42am
Quoting billytt
Turveyd,,, how come your posts were put in a different place. and your right if you lose get out, thats what trading is. and good day to you

Clean up, some of yours went to, they where just late night chat while all closed so who cares or should care.

Not even opened the charts yet, hmmmmm not a good start!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #209
  • Jan 2, 2013 8:05am Jan 2, 2013 8:05am
well the e/u g/u and us oil all broke the previous daily highs and inside bars broke out so an excellent start to the year. Like i said i am not trding until next week apart from the oil spikes
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #210
  • Jan 2, 2013 8:08am Jan 2, 2013 8:08am
i tried to get the daughter to explain her theory of waves lol. I FAILED. she said if i pay her she MIGHT tell me. I then told her about NEDGING lol she told me to get a life. she believes in fairies,postman pat and unicorns etc but says nedging is stupid,,, oh well
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #211
  • Edited 8:49am Jan 2, 2013 8:19am | Edited 8:49am
Quoting billytt
i agree entirely, but the original question was ''how to save a losing position'' and in my humble opinion you are adding to it in a vague way. This sort of trading should be left to the actual market makers if at all
I explained in my earlier posts that I am using the method all the time while able to earn my living easily from trading. So, believe me that I know what I am talking about.
I am not going to argue about a method in theory if I have enough practical proof that it works. Too bad, such threads turn into BS talk from early stage...

P.S. GBPJPY has moved -133 pip, AUDJPY +154 pip and CADJPY +138 pip since market open. So, weighted result is that the basket has covered the initial loss by 25 pips.
I also attach a picture to show where the basket is in comparison with 2000 last hourly candles. USD pairs are used for calculation because the version of Arb-O-Mat that I have is meant to work with USD pairs only. But there is no difference because we are interested in relations between GBP, AUD and CAD.
As you see, the basket is returning from above standard deviation 2. Even if it will retrace back meanwhile, it cannot go too far and will return to 0 for sure. Just some patience needed.
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-01-02_164117.jpg Size: 116 KB
  • #212
  • Jan 2, 2013 8:50am Jan 2, 2013 8:50am
Quoting Indrek
I explained in my earlier posts that I am using the method all the time while able to earn my living easily from trading. So, believe me that I know what I am talking about.
I am not going to argue about a method in theory if I have enough practical proof that it works. Too bad, such threads turn into BS talk from early stage...

P.S. GBPJPY has moved -133 pip, AUDJPY +154 pip and CADJPY +138 pip since market open. So, weighted result is that the basket has covered the initial loss by 25 pips.

Can you prove the Bold bit ? cause if you can't / don't want to then don't bother to say it, it's meaningless to all.

So on those 3 trades whats the lot sizes of each and which are long or short pls.

But surely if you'd of just traded 1 of them and got the direction right you'd be >+130pips at this stage rather than +25pips I guess your saying.

If they'd of went the opposite way you'd be -25pips ? so the same as your win so far.

Surely if you just trades at 1/5th ish the lot size, you'd be reducing your risk and limiting your reward to the same area.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #213
  • Edited 9:57am Jan 2, 2013 9:43am | Edited 9:57am
Quoting Turveyd
Can you prove the Bold bit ? cause if you can't / don't want to then don't bother to say it, it's meaningless to all.

So on those 3 trades whats the lot sizes of each and which are long or short pls.

But surely if you'd of just traded 1 of them and got the direction right you'd be >+130pips at this stage rather than +25pips I guess your saying.

If they'd of went the opposite way you'd be -25pips ? so the same as your win so far.

Surely if you just trades at 1/5th ish the lot size, you'd be reducing your risk and limiting your reward...
It all started with someone showing to us his unhappy trade that was -130 pips. Then I suggested a basket that could rescue the trade - if initial lot size of short GBPJPY was 1, then long AUDJPY had to be 0.44 and long CADJPY 0.66. You see same numbers also on the picture that I posted. In earlier posts I also mentioned a thread where both method and tools are available: http://www.forexfactory.com/showthread.php?t=363198
And yes, if you trade one pair then you get quicker result, either positive or negative. That is why I use baskets only for coming out of bad trades. Initially I trade like a normal trader
  • #214
  • Jan 2, 2013 10:01am Jan 2, 2013 10:01am
Quoting Indrek
It all started with someone showing to us his unhappy trade that was -130 pips. Then I suggested a basket that could rescue the trade. It is all in earlier posts in this same thread. And I also mentioned a thread where both method and tools are available: http://www.forexfactory.com/showthread.php?t=363198
And yes, if you trade one pair then you get quicker result, either positive or negative That is why I use baskets only for coming out of bad trades. Initially I trade like a normal trader
Basket's aren't magic there not an instant rescue plan, they come with risks attached to them.

I don't get it or see the logic to it personally, okay some people take it to personally and can't take losses ( ME ).

I think not getting into the hole in the first place is key, which yep STOP's fix very easily no complicated rules, but yes they can be a Pain at times to.



Learn to take the bad trades on the head like a man I say, close them and get it back on the next trade, don't take your trading on a trade by trade basis, as long as the account is generally going up all is good.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #215
  • Jan 2, 2013 10:08am Jan 2, 2013 10:08am
Quoting Turveyd
Basket's aren't magic there not an instant rescue plan, they come with risks attached to them.

I don't get it or see the logic to it personally, okay some people take it to personally and can't take losses ( ME ).

I think not getting into the hole in the first place is key, which yep STOP's fix very easily no complicated rules, but yes they can be a Pain at times to.



Learn to take the bad trades on the head like a man I say, close them and get it back on the next trade, don't take your trading on a trade by trade basis, as long...
You are absolutely right, it is everyone's choice what to do. But the question of this thread was: "How to rescue a losing position". So, I decided to show one possible way that I personally use.
Usually I have 0-2 bad trades per month, so not much time nor margin needed to have 1-2 baskets hanging on my account while I am continuing normal trading. For me, baskets are pure fun. I keep them until they are in profit, until then I simply forget them.

P.S. Basket is +40 now.
  • #216
  • Jan 2, 2013 10:15am Jan 2, 2013 10:15am
Quoting Indrek
You are absolutely right, it is everyone's choice what to do. But the question of this thread was: "How to rescue a losing position". So, I decided to show one possible way that I personally use.
Usually I have 0-2 bad trades per month, so not much time nor margin needed to have 1-2 baskets hanging on my account while I am continuing normal trading. For me, baskets are pure fun. I keep them until they are in profit, until then I simply forget them.

Okay, how long do they generally take to recover the initial loss say if the loss 130pips ? It's going to have to continue down 500-600 pips for the basket to compensate for the -130 ??

Ever get into a position, where the basket value is actually in a much worse position than the losing trade was before you bought the recovery basket ?

Surely GU a few years back, 2.1000 to 1.30000 in a 6month free fall, you couldn't hold the basket through that if your on the wrong side ?? or if the side after basket flipped to that then ouch maybe ?
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #217
  • Jan 2, 2013 10:22am Jan 2, 2013 10:22am
Quoting Turveyd
Okay, how long do they generally take to recover the initial loss say if the loss 130pips ? It's going to have to continue down 500-600 pips for the basket to compensate for the -130 ??

Ever get into a position, where the basket value is actually in a much worse position than the losing trade was before you bought the recovery basket ?

Surely GU a few years back, 2.1000 to 1.30000 in a 6month free fall, you couldn't hold the basket through that if your on the wrong side ?? or if the side after basket flipped to that then ouch maybe...
No, my friend, I am talking about weighted number of pips, not total number of pips. Right now it means that our loss is not 130 any more but 130-40=90!
How long? I dont know as I never let a trade to 130 pip loss... I usually have to recover max 60 pip. Firstly, I use opposite pending order of the same pair instead of stop loss. And when both orders are active then I wait until I find a basket that includes my initial pair and exceeds standard deviation 2. After that we may also have drawdown but not much. Full recovery can take 1 day but also couple of weeks. Depends on the market.
If I have one basket on the background of my normal trades then it never can eat the profit that I make meanwhile.
  • #218
  • Jan 2, 2013 10:28am Jan 2, 2013 10:28am
Quoting Indrek
No, my friend, I am talking about weighted number of pips, not total number of pips. Right now it means that our loss is not 130 any more but 130-40=90!
How long? I dont know as I never let a trade to 130 pip loss... I usually have to recover max 60 pip. Firstly, I use opposite pending order of the same pair instead of stop loss. And when both orders are active then I wait until I find a basket that includes my initial pair and exceeds standard deviation 2. After that we may also have drawdown but not much. Full recovery can take 1 day but also...
Okay getting to confusing for this old man that's for SURE!

Well if you find it fun the challenge / logic aspect of it I guess then all is cool, but not for 99% of us I'm sure.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #219
  • Edited 11:12am Jan 2, 2013 10:31am | Edited 11:12am
Quoting Turveyd
Okay getting to confusing for this old man that's for SURE!

Well if you find it fun the challenge / logic aspect of it I guess then all is cool, but not for 99% of us I'm sure.
You must have a proper account size for such games, for sure. I usually keep it bigger than I would really need for my normal trading. And I trade only 4-5 pairs on hourly charts, which means that usual number of bad trades is 0-2 per month. So, I can afford some fun also
But in this thread I initially just wanted to point to a method that is available and really works.
  • #220
  • Jan 2, 2013 10:36am Jan 2, 2013 10:36am
Quoting Indrek
You must have a proper account size for such games, for sure. I usually keep it bigger than I would really need for my normal trading. And I trade only 4-5 pairs on hourly charts, which means that usual number of bad trades is 0-2 per month.
Although I understand other forms of trading, I'm a 5SL scalper M1, I'm a whats the current direction it's up I'm wrong -6 it's down I'm right +25 kinda guy, so wouldn't really work for me, spread costs would be kinda excessive compared to pip movement.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
0 traders viewing now