Our 400,000 Trade Test Proves Using Stops Is Not Very Bright

[der_kommissar]

If you are positioned sized properly, it makes sense not to use stops. I am not saying never close a losing position-- but closing the position needs to be thought of in a dynamic fashion rather than a fixed price stop. Sure if u are over leveraged or trading too big for ur account size, unless hedged, what i am saying is not practical.

Remember, we are dealing with an oscillating system.

Or as we've all witnessed countless times...Your decision not to cut losses quickly leads to more haphazard adds (random, I might add) until you reach your "uncle" point...IOW, you turn small insignificant losses into devastating hits...repeatedly.

There is no one on this forum less qualified to talk about risk management than yourself...

 

[speedo]

I use stops. I haven't done research papers since graduate school (long time ago). I trade for a living. Thank you for your input though, it is entertaining.

 

[der_kommissar]

Instead of attacking me, man. Why not wonder why test after test indicate stops degrade system performance?

Why is this??

Then why did you "stop" yourself out on the very lows in mid January? It wasn't in the "system", it was the fact that you turned a small loss into a monster loss and couldn't take any more "pain"...IOW, if you are such a believer in this trade without stops philosophy, then you should have just kept adding and you probably would have had a small winner by early February.

The problem is that you don't even believe the b.s. that you post any longer.

 

[samuel11]

There is no one on this forum less qualified to talk about risk management than yourself...

I would argue that it also makes him the most qualified to talk about it

 

[der_kommissar]

I would argue that it also makes him the most qualified to talk about it

Assuming that he learned one iota from his numerous failures...but clearly he hasn't.

 

[samuel11]

Assuming that he learned one iota from his numerous failures...but clearly he hasn't.

I know he hasn’t, just do the opposite of whatever he says

 

[botpro]

Why not wonder why test after test indicate stops degrade system performance?

Why is this??

Well, I can't tell you that because I haven't studied this myself fully yet.
But I made the following observation when developing my swingtrading portfolio long-only options system (ie. it trades many titles at the same time, keeping single positions upto 10 days):
If the SL per position is set to less than 10% or more than 15% (depending on HV) then the performance starts to degrade significantly.
So, that region seems to be an ideal area for SL for this environment. But as said I haven't studied it fully yet for my own case,
just made that important observation and took simply the midpoint at about 12.5% SL (depending on HV).
But of course it is obvious to see that my environment is a little bit different than what you and the other studies have tested.
And: SL in this sytem does not necessarily mean a real stop. At such an SL level some other substrategies get applied like scaling-in etc.

(HV=historical vola of the underlying)

 

[destriero]

Works here.

Where is that? Dumbf*ckistan?

 

[El OchoCinco]

I use stops. I haven't done research papers since graduate school (long time ago). I trade for a living. Thank you for your input though, it is entertaining.

This is not simulated results, this is a real result.

 

[I Know You]

Botpro for moderator. Amazing skills.