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Do you believe brokers hunt your stoploss 434 replies

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Do you use stoploss?

  • #141
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  • Jul 22, 2015 4:41pm Jul 22, 2015 4:41pm
SNBomb really showed traders why stops should be used. Only amateur traders aren't using them. Sorry and a handful of Market Wizards. And even 27of 29 of them use stops. This tells enough I think.
Cheers!
  • #142
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  • Jul 25, 2015 2:14am Jul 25, 2015 2:14am
I ALWAYS use a stop.

Couldn't imagine opening a trade without some form of stop because it basically defines how much $'s I'm willing to risk and what sort of profit target I'm shooting for e.g. reward = 3 x initial risk.

As my trade progresses, I aggressively pull the stop back to break-even as soon as I can. I use strategic price levels to decide when and how to trail the stop.

Gotta understand their limitations though. Stop Orders are essentially just market orders so they wont offer any protection against weekend price gaps or major economic surprises e.g. SNB or NFP.

Also need to understand the Trigger Mechanism your broker uses for stop orders.

MT4 brokers use a simple spread trigger, which is vulnerable to transient spread widening. So a stop for a long order will be triggered on the Bid price. Other brokers offer multiple stop-order trigger mechanisms such as trade-through stops, or last trade price (in the case of GLOBEX currency futures) etc. This can make the stops a bit more solid. But you can implement a trade-through stop on MT4 using a simple EA.

This game is basically about making money with the least risk possible i.e gain relative to risk.
  • #143
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  • Jul 25, 2015 6:44am Jul 25, 2015 6:44am
Of course. There is no reason to trade without a stop loss. If you do not trade with a stop loss then you don't know what you are doing and have no plan. Which means you shouldn't be trading yet. You must educate yourself first.
  • #144
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  • Jul 26, 2015 12:45am Jul 26, 2015 12:45am
My trading results and account preservation has changed dramatically from the day I've started using a stop loss. It saves my account from blowing up as I had some small accounts. By using stop loss, you only lose a part of your trading equity, with rest amount you can still trade the next day.
  • #145
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  • Jul 26, 2015 6:12am Jul 26, 2015 6:12am
1. Do you use stoploss or not?

No I do not use stoploss

2. Why do you use stoploss and why you don't?

I usually like to trade during the time when the market has a high volatility, which means that it is very likely that the market may hit my stop loss, if I were to set one. Also, the amount of money in my account is not that much, so I am able to accept the potential loss if my account were to be wiped out.

3. How many pips do you use your stoploss?

Not applicable
  • #146
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  • Jul 26, 2015 11:58pm Jul 26, 2015 11:58pm
For the people that use stop-losses in their trading, ,

Do you also employ or have considered to use a weekly loss limit. Like for instance if you lose a certain amount in a week you stop trading for that week because you have hit your weekly "stop-loss" in a sense.

I have come across that notion before and like the idea but have never actually tried to implement it.
  • #147
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  • Jul 28, 2015 5:29pm Jul 28, 2015 5:29pm
Quoting TrdngProdigy
For the people that use stop-losses in their trading, , Do you also employ or have considered to use a weekly loss limit. Like for instance if you lose a certain amount in a week you stop trading for that week because you have hit your weekly "stop-loss" in a sense. I have come across that notion before and like the idea but have never actually tried to implement it.
That may be a bad choice I say, depending on whats happening in the markets... Sometimes you may miss an important move, but if your losses are affecting you go for it.
  • #148
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  • Jul 29, 2015 4:22am Jul 29, 2015 4:22am
Often market moves very fast in opposite direction of your order, mainly because of any major news by which you are not aware off. In such cases stop loss helps in protection your loss to a certain level but only if you have set one in your trade.
  • #149
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  • Jul 29, 2015 2:19pm Jul 29, 2015 2:19pm
I always use a Stop Loss. Sometimes I use hidden stop loss, but for it you have to use some script.
  • #150
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  • Jul 30, 2015 10:57am Jul 30, 2015 10:57am
Quoting MikeF
I always use a Stop Loss. Sometimes I use hidden stop loss, but for it you have to use some script.
A hidden stop loss? Hidden from whom? You can't hide it from your broker or it won't execute. Maybe I am missing something?
  • #151
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  • Jul 30, 2015 7:30pm Jul 30, 2015 7:30pm
Quoting PipC
{quote} A hidden stop loss? Hidden from whom? You can't hide it from your broker or it won't execute. Maybe I am missing something?

Not completely sure what he might mean, but I think he is speaking of entering a price for a stop loss in the script (or EA), and then once it triggers, the script (or EA) will tell the computer to close the trade.

This way you never actually placed a stop loss order with your broker, rather the script is always running and is waiting for the price to reach the price you specified, and once the price of the instrument (currency pair) reaches your specified price, the script will close the order. In other words, the entered price in the script is acting as your stop loss.

This may be useful if you are trading with a broker who hunts your stops and trades against you, I, luckily, don't have experience with trading with such brokers though but have heard of this tactic.
  • #152
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  • Jul 30, 2015 9:21pm Jul 30, 2015 9:21pm
Sure, Stop losses do, in fact, stop losses. Unfortunately, they stop more winners than losses.
  • #153
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  • Jul 30, 2015 9:29pm Jul 30, 2015 9:29pm
Quoting TrdngProdigy
{quote} Not completely sure what he might mean, but I think he is speaking of entering a price for a stop loss in the script (or EA), and then once it triggers, the script (or EA) will tell the computer to close the trade. This way you never actually placed a stop loss order with your broker, rather the script is always running and is waiting for the price to reach the price you specified, and once the price of the instrument (currency pair) reaches your specified price, the script will close the order. In other words, the entered price in the script...
Yeah that sounds like it. Like you said though, you really shouldn't be trading with a bucket shop that runs stops anyway. Any reputable broker could care less about where your stop loss is. In fact, if you are stop loss is hit too frequently, chances are you just placed it in a bad area or it is too tight.
  • #154
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  • Jul 30, 2015 9:53pm Jul 30, 2015 9:53pm
Quoting PipC
{quote} Yeah that sounds like it. Like you said though, you really shouldn't be trading with a bucket shop that runs stops anyway. Any reputable broker could care less about where your stop loss is. In fact, if you are stop loss is hit too frequently, chances are you just placed it in a bad area or it is too tight.
Exactly, trading is hard enough as it is, the last thing you want to be concerned about is your broker.
  • #155
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  • Jul 30, 2015 10:41pm Jul 30, 2015 10:41pm
Sometimes I am using sl levels but not often. Usually I have an access to my account (at least, using android device) so I see when I have to close my orders. I am a full-time trader. I am opening my trades from home PC and I am using technical analysis and my own indicators to know when I have to open new order and where market have to move. So after opening of order all I need is to check my order's state to know when I have to close it.
Skype: KashinUA
  • #156
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  • Aug 1, 2015 4:24am Aug 1, 2015 4:24am
Quoting PipC
{quote} A hidden stop loss? Hidden from whom? You can't hide it from your broker or it won't execute. Maybe I am missing something?
You can use an EA which will not send stop loss to a server, but close the order when price will go up/down.
  • #157
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  • Aug 1, 2015 6:32am Aug 1, 2015 6:32am
Here is some sincere advice WRT stoploss management. European open - On the hourly chart, find the high and lows of the last two days, i.e. 48 hours, draw your lines at these two points. Depending on which trade you in, the opposite provides your stoploss....as shown below. Get clever guys and take your losses if these parameters are reached. if your trade is profitable, move the stop to your opening and enjoy the ride for two hours, then exit. USA opening - same strategy.

Attached Image (click to enlarge)
Click to Enlarge Name: Eurjpy.png Size: 66 KB
clasgolf
  • #158
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  • Aug 3, 2015 6:59pm Aug 3, 2015 6:59pm
I do not like EAs, but "hidden stoploss" - is something interesting. Anyway, it is the same, as I am watching for loss levels of my orders manually. Sorry for my English.
Skype: KashinUA
  • #159
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  • Aug 3, 2015 11:16pm Aug 3, 2015 11:16pm
I do use SL, like 50 pips away with EU and Cable.
Meditate -> Workout -> Good Food = Good Life!
  • #160
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  • Aug 10, 2015 3:14pm Aug 10, 2015 3:14pm
No I don't, but only when I'm sure enough what I'm doing. For me stop losses have stopped more winners than losers.
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