DislikedI think this became "religious discussion" that there is no one truth...Ignored
Let me suggest an alterative that does have a mathematical advantage. Trade with a stoploss, but (almost) never hit it.
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DislikedI think this became "religious discussion" that there is no one truth...Ignored
Disliked{quote} I respectfully disagree. I don't think this is a religious or philosophical issue. I think it's a math problem and it has a deterministic answer. I see no mathematical advantage to hedging at all. Let me suggest an alterative that does have a mathematical advantage. Trade with a stoploss, but (almost) never hit it.Ignored
DislikedThis is a no-brainer question. When you are leveraging or gearing in forex trade, you are already hedging your trade and if your trade is wrong or fail, the obvious and logical way is to stop the loss, and hence stop loss. Why would anybody in the world would want to carry on losing despite a failed trade? Why are we deliberating over issue which is so basic and simple really riled my comprehension. GSIgnored
Disliked{quote} Still struggling Chicky lol - First off I question your statement that EU cannot go below 0 - I would posit that it can. At the moment you get 1.25 Dollars for 1 euro if that was to go to Euro1 = 25c that is below zero. We also do not and cannot know how high it can go(that also applies on the low side) - there is no reason it could not got to $20= 1 Euro - however unlikely that might be. You state that the limit for the open end is 2.5 - I would suggest it is infinite, also unlikely, but possible. Given your background in bookmaking I think...Ignored
Disliked{quote} This is confusing the hell out of me - Yes, there will be losses, but no trade ends on a loss. How can you have losses if no trade ends in a loss - unless you never close a losing trade of course??? better than this Safety Net? Yes there is, but I don't know if there are. If you don't know if there is how do you know there even is one?Ignored
Disliked{quote} 1. Unrealized losses, but no realized loss 2. There are many safety nets I know of, but there is only one tactic I know that is better than a safety net. I found that while testing a method that I got from a trader who works for a forex billionaire executing his trades under instructions The boss made over one Billion dollars forex money in about 10 years. The trader, while executing the boss' trades tried to infer the method and shared with me claiming that this method worth one billion dollars. Since I got this method not directly from...Ignored
Disliked{quote} So lets get this straight - you have found a trader who apparently trades for a billionaire and he has shown you how to trade?? Now after 6 yrs of promoting your holy grail, you think you have finally found it and you are gonna give up the day job and go pro.with a method that you managed to ''deduce'' from a human robot. So how much is this system gonna cost? Hows the elite trading method going btw - I thought that was the ''holy grail'' like your other make a million schemes.Ignored
Disliked{quote} The reason why I've called religious is that, I have not yet managed to build (and I have not heard) a consistent system/method/expert that would work and profit all the time. It's totally related with the extreme non-linearity and chaotic characteristic of the markets. If I could have managed to do so I might able to proof the math work. What we are testing is valid for some period, could be years or months doesn't matter. The markets change so our all parameters must adapt to the market conditions but it does not. Many of us tries to "optimize"...Ignored
Disliked{quote} Thanks for the detailed reply. I consider this an important subject. Most successful traders don't win any more than unsuccessful ones. Successful traders just find a way to lose less than unsuccessful ones, and that's the subject of discussion. Can you prove that (mathematically) stoploss is better? Yes, I think I can. The fact that the end result of exiting the trade, either manually or by stoploss, has the exact same effect on the account (eventually) as hedging makes the two actions equivalent. Delaying taking the loss doesn't improve...Ignored
Disliked{quote} ...if you put your stop to 50pips and you close your order at 20pips then your real stop is at 20pips. And 20 pips is "too" close for the normal volatility of the market...Ignored
Disliked{quote} In the end I close my trade when I see it's not working. It may be at only -5 pips, or it may be at -49 pips with a 50 pip stop, depending on the trade. If I can see a trade isn't working at -10 pips and not wait until it hits -50, I've saved 40 pips. I might never see that it isn't working and close just to avoid hitting a stop, but that would be a particularly thick-headed day. But even if I let the trade run against me 49 pips and close, I've still saved one pip and I haven't hit a stop. The trick is to always trade with a stop and very...Ignored
Dislikedif you dont place a Stop Loss .... market itself will place it for you at your equity stopIgnored
Disliked{quote} I'm also closing trades when the system logic says close it! However: 1-) In some cases when the price turns back very sharply (say 40pip bar or 60pip bar), your indicator/method might not "catch" it on time!!! But stop level does not look at anything but just price. 2-) In general it's not very common that an indicator/method would tell us that it's a "no-go" point after -20pips. It usually first goes up some pips like 20,30 and then hits back and system says let's close it at -20pips...Ignored
Disliked{quote} You dont have to go microscopic you just dont play your full position out of the box. Lets say you like to play 1.00 lot sizes. You dont have to enter the trade at a 1.00 lot but go in with quarters. You can add to a winning trade by .25 a position or a losing trade by .25 a 2nd, 3rd, or 4th position. After a while you can see if the trade is bad or good against you. If it truly is bad and you really did misread the market you are not taking the full hit when you close a losing trade versus and person who tries to go one in one out with...Ignored
Disliked{quote} For most traders I've looked at (Trade Explorers and such), I'd describe my legs (which are about the same size as yours -- 1/4 of what I want to devote to an entire position) as "microscopic." Most folks are going in far bigger; my rule-of-thumb is <.5 times equity per leg with max exposure for the entire position (i.e., all of the legs) of 2 x equity ... . Naturally, some times I go bigger for the whole position, but the legs are pretty much always .5 x equity or less ... . P.S. -- Yes, I was that weird guy in the gym looking...Ignored
Disliked{quote} From hard experience that is the best way to trade. Gives you room to bail or add depending on how you read the market. No account killers when you finally close out a losing trade and multiply the winning move. I really cant see anyway better to trade Forex.Ignored