Do you use stop-loss orders at all?

[Mr B]

don't complain, the money you're making comes from them!

for scalping brent you can't really use an automated stop as the order book is too thin and you won't get the price you want.

for scalping fixed income the order book is too thick, and 1 lot activates an automated stop, so it's also pointless.

 

[WmWaster]

Quote from Mr B:

don't complain, the money you're making comes from them!

for scalping brent you can't really use an automated stop as the order book is too thin and you won't get the price you want.

for scalping fixed income the order book is too thick, and 1 lot activates an automated stop, so it's also pointless.

Oh I see - scalping!

How about if you're scalping, but all of a sudden, the market moves dramatically against your position?

 

[Steve Tvardek]

If its a freak occurence and the market moves faster than I'm able to get out at a reasonable price then I'll take my big loss and move onto the next trade. Since it rarely happens this way, I'll play the percentages and keep trading the way I do.

Quote from WmWaster:

Oh I see - scalping!

How about if you're scalping, but all of a sudden, the market moves dramatically against your position?

 

[ElectricSavant]

I trade Retail Spot Forex.

21 Days ago I took one of the systems live that I Backtested for ten years and Forward tested from February of this year and Random tested.

I do not use stops. I use "add to's".

I use a hedged approach that tames the unrealized P/L and that allows me to have the time to "corner" the trade.

I have never had a losing day in this live account and have used no more than 7:1 leverage, so far. I have never seen more than 1/4 of 1% DD during the hold of the short term trade and in between the trades, so far.

Open your mind as to how to trade. The old axioms do not apply and are simply not correct. You can trade without stops and I am proving it everyday. It is not my quest to prove anything and I do not condone trading recklessly.

I trade other systems that require stops...so please do not attack me as the "No Stop" guy...I am simply an idiot piker savant, trading retail, that does not have a clue

And as Always, "Good trading to everyone".

Michael B.

P.S. I use 15% DD as my uncle point to shut the system down. This is why I use low leverage and hedging, as I like to trade this system and hope it will last and not force me out..then what would I do?

 

[WmWaster]

Quote from Steve Tvardek:

If its a freak occurence and the market moves faster than I'm able to get out at a reasonable price then I'll take my big loss and move onto the next trade. Since it rarely happens this way, I'll play the percentages and keep trading the way I do.

What market do you trade?

For me, the market I trade sometimes move 50-300pips within a second or so. However I never get killed by all these surprise moves. Although they happen all of a sudden, the price will usually, if not always, issue forewarning.

 

[illiquid]

Personally, I like using stops -- offensively as well. In the markets I watch (upsidedown-land tape), the best moves usually occur totally out of the blue on no volume and catches everyone off guard.

What's the big deal about avoiding stops in principle anyways? I understand that in scalping, you better be faster than your stops, but otherwise -- you're wrong, you take a loss. You try again.

It begs the question, what's your objective in trading? To make money? Or to never take a loss? They are far from the same.

 

[Steve Tvardek]

US equities.

Quote from WmWaster:

What market do you trade?

For me, the market I trade sometimes move 50-300pips within a second or so. However I never get killed by all these surprise moves. Although they happen all of a sudden, the price will usually, if not always, issue forewarning.

 

[ElectricSavant]

oh, I take losses...the aggregate for the shift nets me positive though...never fails..

Quote from illiquid:

Personally, I like using stops -- offensively as well. In the markets I watch (upsidedown-land tape), the best moves usually occur totally out of the blue on no volume and catches everyone off guard.

What's the big deal about avoiding stops in principle anyways? You're wrong, you take a loss. You try again.

It begs the question, what's your objective in trading? To make money? Or to never take a loss? They are far from the same.

 

[WmWaster]

Quote from ElectricSavant:

21 Days ago I took one of the systems live that I Backtested for ten years and Forward tested from February of this year and Random tested.

I do not use stops. I use "add to's".

What do you mean by "add to's"?

It's traditional wisdom that one must use stops to protect itself, be it mental or physical.

Usually mental stops are said to be bad since this will deepen the endurance towards losses. They usually do not have enough discipline to execute their mental stops. They just keep retracing and retracing.

So it's interesting to hear the reasons why one say "no stop (protection)" is actually better, unless you are involved in something like hedging, scalping, or arbitrage. Stop-loss seems a must in normal trading.

I'm open to any new ideas.

 

[Steve Tvardek]

Not if you have the discipline to pull the trigger and cover when you are wrong. If you dont have this discipline, then physical stops are a must.

Quote from WmWaster:



Usually mental stops are said to be bad since this will deepen the endurance towards losses. They usually do not have enough discipline to execute their mental stops. They just keep retracing and retracing.