Do you believe tight stop-losses cause losses in the long run? | Page 3 | Forex Factory

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Do you believe tight stop-losses cause losses in the long run?

  • #41
  • Aug 4, 2013 11:27pm Aug 4, 2013 11:27pm
Quoting Turveyd
{quote} Dunno, the amount of times I've been SL'd at the bottom which them would of ran for very good pips, it's tempting to run without. Ofcourse a lot of SL's saved me from 200pip moves against me, so you'd have to trade at a lot size where 200-300pips is 3% say.

Agreed. Can only see it working with small lot sizes.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #42
  • Aug 5, 2013 5:55am Aug 5, 2013 5:55am
Quoting vox dei
{quote} Agreed. Can only see it working with small lot sizes.

As a 30pip SL trader, was 12SL area before, yep 1/10th lot size which I can't do without a micro micro account.

Switching same method as I'm trying at the moment on M5, slowing it down to M30 looks like it would support this.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #43
  • Aug 6, 2013 4:37am Aug 6, 2013 4:37am
Quoting Makavell
{quote} i use a prime broker with a minimum balance req of $50,000, but my account balance is way more than that.
Doesn't mean you can't trade in micro accounts.
When I Buy Price Short, When I Sell Price Goes Long.
  • #44
  • Aug 6, 2013 9:46am Aug 6, 2013 9:46am
Quoting wlk1
{quote} Which Prime Broker has a minimum balance of USD50K ? Do they have facilities for Money Managers ?
Baxter fx
  • #45
  • Aug 6, 2013 10:09am Aug 6, 2013 10:09am
Guys I really don't think there's any need to argue about having a stop loss or not or the size of ones stop. I personally know a very successful trader named 'Sniper' by friends, all he does is scalp for 5 to 20 pips with very little stop loss as low as 7 or 10 pips, and thru the years he has mastered and perfected this art to a very high degree, recording very impressive yearly gains. He's been at this since the early 2000's. I also know other consistently profitable traders who cant even imagine opening a position with anything less than a 300pip stop.

The essence of this game is to make money and also doing it consistently. Whichever way you figure out how to do this is left entirely up to you. You need to consider your strengths and weaknesses as a person and then formulate a method that best suites you, and believe me, this process takes YEARS.
  • #46
  • Aug 6, 2013 10:14am Aug 6, 2013 10:14am
Quoting Makavell
Guys I really don't think there's any need to argue about having a stop loss or not or the size of ones stop. I personally know a very successful trader named 'Sniper' by friends, all he does is scalp for 5 to 20 pips with very little stop loss as low as 7 or 10 pips, and thru the years he has mastered and perfected this art to a very high degree, recording very impressive yearly gains. He's been at this since the early 2000's. I also know other consistently profitable traders who cant even imagine opening a position with anything less than a 300pip...
here! here!
When I Buy Price Short, When I Sell Price Goes Long.
  • #47
  • Aug 6, 2013 11:59pm Aug 6, 2013 11:59pm
Quoting Makavell
Guys I really don't think there's any need to argue about having a stop loss or not or the size of ones stop. I personally know a very successful trader named 'Sniper' by friends, all he does is scalp for 5 to 20 pips with very little stop loss as low as 7 or 10 pips, and thru the years he has mastered and perfected this art to a very high degree, recording very impressive yearly gains. He's been at this since the early 2000's. I also know other consistently profitable traders who cant even imagine opening a position with anything less than a 300pip...
Scalpers who can make consistent profit for at least 10 years are amazing people, since the spread cost is very high. Two thumbs up for them.
  • #48
  • Jan 15, 2015 4:41am Jan 15, 2015 4:41am
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
  • #49
  • Jan 15, 2015 7:59am Jan 15, 2015 7:59am
Quoting ericnyamu
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
Not my business really and everyone's entitled to its own opinion, but I believe that some people took some really large losses today and we do not need to make it even worse. I am just writing this post because I have seen yours posted in many threads around FF.
  • #50
  • Jan 15, 2015 8:09am Jan 15, 2015 8:09am
Quoting Makavell
Guys I really don't think there's any need to argue about having a stop loss or not or the size of ones stop. I personally know a very successful trader named 'Sniper' by friends, all he does is scalp for 5 to 20 pips with very little stop loss as low as 7 or 10 pips, and thru the years he has mastered and perfected this art to a very high degree, recording very impressive yearly gains. He's been at this since the early 2000's. I also know other consistently profitable traders who cant even imagine opening a position with anything less than a 300pip...
I don't scalp profitable for 14 years as your friend, but I have a few years now being profitable with the same style and I do not believe tight stop losses are burying an account in the long run, unless the strategy used for scalping/trading is not a viable one.
I use a 10pip SL at all times plus spread, but spread is quite small for the pairs I usually trade. I take usually 1 loss in about 10 trades. Every now and then it might be 2 losses but the profits on each trade varies from 5 pips to several tens, depending on the volatility. I never cap my profits and never move my SL. If I take a loss there is no problem because I know it's part of trading.
  • #51
  • Aug 24, 2015 9:57pm Aug 24, 2015 9:57pm
Quoting sandycarrot
how about tight stop losses with 2 pips or 5 pips or 7 pips What do you think guys,, in the long run
Whoa man 2 pip stop loss are you for real?
Don't do that. Having a 2 to 10 pip stop losses will get you kicked out straight away.
Lower your lot size, set your stop losses at the last support or resistance and give it room to breath. Personally I only trade the 4H timeframe and my stop losses are usually 50-100 pips. Depending where the last support or resistance area is.
  • #52
  • Aug 26, 2015 8:49pm Aug 26, 2015 8:49pm
I do not blame tight spread for loss. We can easily calculate according to plan with tight spread . Spread is not an only reason for loss there are involved so many elements. In the long run trader can change his strategy and spread option as his broker facilitate him.
  • #53
  • Aug 26, 2015 8:56pm Aug 26, 2015 8:56pm
With tight stoplosses you will have more losses. So, you need to let trades with tight stops run for a long time to get a large reward, making up for all the losses you'll get with a tight stop....blah...blahh...blah...
  • #54
  • Aug 30, 2015 5:03pm Aug 30, 2015 5:03pm
I think that choise of tight stop-losses depends on the trading strategy. And tight stop-losses don't fit for long run when you must waiting for a long time for to take profit. Tight stop-losses are good when you want trading on a small trands.
  • #55
  • Aug 31, 2015 5:30pm Aug 31, 2015 5:30pm
Stop Loss is always needed. This is your point of no return, which helps to avoid losing a large amount. If you stand for a long time, you can move it so that when the shock of the market is not in our favor, it was possible to get out of losing.
  • #56
  • Sep 1, 2015 6:02am Sep 1, 2015 6:02am
Quoting sandycarrot
Do you believe if your stop loss too tight you will find it hard to stand up in the long run
Here is a backtest of my Renko scalper EA which sets a tight stop loss (3-5 pips) with 7-12 pips profit target for each trade. I hope this gives you a view about tight stop loss scalping in long-run.
Attached Image (click to enlarge)
Click to Enlarge Name: RenkoScalperEA.png Size: 34 KB
Trading is the hardest way to make easy money...
  • #57
  • Sep 1, 2015 3:22pm Sep 1, 2015 3:22pm
Quoting sandycarrot
Do you believe if your stop loss too tight you will find it hard to stand up in the long run

i believe it to be the oposite
  • #58
  • Sep 9, 2015 6:22am Sep 9, 2015 6:22am
if your SL are over 10 pip for an intra-day trader, you have no idea what you're doing and you should go to bed.
i lose money for a living
  • #59
  • Sep 9, 2015 9:48am Sep 9, 2015 9:48am
Quoting sandycarrot
Do you believe tight stop-losses cause losses in the long run?

I believe (in fact I know) that too-tight SL's cause losses in the long run, just like too-wide SL's do.

That's kind of self-defining, though, isn't it? If they weren't performing sub-optimally, they wouldn't by definition be "too" tight/wide?

A slight diversion of subject, but one of the things I've gradually learned from my own trading is that trailing SL's, attractive though they often seem at first glance, can also easily cause losses: it's easy to overlook, without very accurate monitoring and recording, quite how often the price moves in your direction, taking a trailing stop with it, and then retreats temporarily just enough to take out your trailing stop, before proceeding to what could otherwise have been a very profitable trade. This is often a great way of getting the direction right and still failing to take much profit!
  • #60
  • Sep 9, 2015 9:53am Sep 9, 2015 9:53am
'Tight' and 'Wide' are relative terms.

I prefer to think that a stoploss is that logically inconsistent within the context of its technical system tends to produce a poor system.
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