Trading Without a StopLoss

It's not an exact Science. First I'll make sure they are in correlation and there are no major news events coming up in the other pair that might whack them out of correlation. My goal when opening the cross currency hedge is to make money by taking profit and jumping right back in at certain levels while the other pair is in drawdown. Rinse and repeat!

Thank you for your reply. Could you open your trade history in myfxbook ?

I posted it a few pages ago. Probably something I won't do on a regular basis as I really don't want to but felt I needed to show trading without SL was working for me. Here's the link

http://www.forexfactory.com/showthre...421191&page=74

Thanks again. If you make your order history in myFxbook public we can scan through your trades and see how you traded and hedged with correlations pairs.

I sometimes use a stop loss, but not very often.

Instead, I hedge. When I think my trade is going to turn against me, I purchase an equal number of lot's the opposite direction.

Um Yeah, I don't mind posting a screen shot but just not going to make it public. Hope you understand

Trading without stop-loss is actually the best. I will soon come up with different ways to do that.

If someone plays without SL, does not mean autoamatically he has no brain, or is blind .....

i think it's actually a suacide trading method.

Not necessarily, its a matter of playing with dominating trend and correct MM.

An example:

In the first position, we put the stop loss.
In the second position, we do not put the stop loss
Now it's a matter of managing the two positions.

In this example if we had placed the stop loss in second position we would have had a loss.

Stop - Loss deployment depends on your trading style - intraday, swing, position - and the amount of time you have to monitor your trades, particularly multiple trades on short-time frames - and taking into account of course market trends and attending technical analysis.

Me? When driving, I don't like to use the break unless I have to, so I drive with caution - and weather conditions play a factor. But neither am I Captain Slow (Jeremy Clarkson on saving money: "How's this for an idea? ... never brake.").

So, I use Stop - Loss, but I view it as the TCP of trading: it will sting after you've been stung, but you'll feel better about taking 'after-the-damage-is-done' control of your life and stinging yourself some more.

I use a kind of active stoploss. If I see a trade is not taking, and my indicators move against me, I get out. sometimes a lot quicker than any stoploss I would ever put ahead of time. The question is where is the trade headed? If it is headed the wrong way, get out. Especially if you are in profit. Don't wait for it to hit some arbitrary target. Those things you set up in the trade plan. When you are in the trade, forget the plan. I would never let a trade get all the way down to a stop loss I would write in advance.

Just remember this:

a margin call is a terrible thing!

If you are in the U.S. and use cross currency hedges to manage your trading debt ( a way to avoid fixed stop losses), Your usual circumstances ( If you use MT4) leave you with a current line that reads like this:
Balance: nnnn.nnUSD Equity: nnnn.nn Margin: nnn.nn Free Margin: nnn.nn Margin Level nnn.nn -nnnn.nn

Your goal is to get the number all the way on the right to get smaller and smaller. That is your Debt Load. IF you get it to go smaller and smaller, the Second number , Equity will get larger and larger, as the first number, Balance, increases (hopefully)

So you should be watching your debt load: If it is getting smaller, all to the good.

Unfortunately it sometimes gets larger and larger, instead. There are four options to consider when this happens

The Four Options:
1.Stand pat if a news event is shaking things up, it will go away. Then see if you have to react.

2.Close some of the trades going against you. This should be done only when necessary. I.E. option one does not sit well with you and there is no room for option 3: ( I get very nervous when the margin level goes below 200%, (risk of Margin Call) or when it goes above 250% (not trading enough). Some people will call me crazy to use such numbers, but they seem to work for me). In my experience, you will sooner or later find yourself in a position where this is the most sensible option. When you use it, be sure to congratulate yourself on your wisdom. Try not to notice how that pair goes the other way as soon as you close it.

3.Get more aggressive with the pairs that are moving into profit. This will increase the weight of the pairs moving to lower the debt load, and frequently can turn things right around.

4. Add money: If you can add money, why haven't you done so already?

In a well balanced scheme of correlated cross currencies, Some will always be going your way when others are not.

I have fifteen such pairs that I trade. All fifteen are on my screen at the same time. (Wait a minute! fifteen is an odd number, who is the odd one balanced with ? Answer: It's complicated.... pairs usually don't pick just one other pair to correlate with.

All you need then is a quick way of determining whether a pair is going up, or going down and a fixed scheme. It is counterbalanced. You should only trade a pair up or down. depending on your scheme.

So you see, there are other things you can do rather than let a bad trade drag you into oblivion

If you like to dive with great white shark without a cage it's up to you ! I'm not risking my arms/legs

i think its suicide But.

If you lose that way once and still wanna do it it's your choice best if you know that feeling

your not losing money until margin call or your own action right

in hedging yeah it might work but you should have some stop los or point where you exit one position
even if you do that you don't know how far gonna go other one

so you might ending paying comisions spread and going near break even in best.

IF METHOD YOU'R USING IS NOT CONSIDERING MARKET MOVEMENT AND R:R BASED ON PRICE ACTION YOU WILL BE ON LOOSING SIDE FOREVER

if you doing without stop loss you dont know how much you want to risk its bad and if you dont know how much you want to make it's no good either

You are gambling go play rulette

Great Post Rap! I do the same thing with EUR/JPY and GBP/JPY and have been trading profitably this way for a while. Amazing how many come out and bash this without fully understanding the method

That's right mate, I think they confound with someone who don't accept losses and the one who don't use SL.
I don't use SL when I'm watching my chart, but I never let run my losses, I usually cut them when it reach a specific level.
I want to add that the trading style and the lot size also play an important role, a long term trader with big balance don't need to use SL in his trading.

In my opinion trading without Stop Loss is not good and we can loose our money immediately.

I think stop loss is must loss in our trade . If you will never use any stop loss then you can recover your loss and trade without risk.