Trading with a Stop Loss in the Futures Market is for Losers

lemarche · Apr 25, 2013

BlueTurtle if you don t use stops you expose your self to massive losses once your strategy, whatever it is, doesnt work anymore. for a defined stop in % and a defined win rate ratio you can calculate your expectancy. it is that simple. high school maths. that you won not using them does not mean you will win in the long term..

emg · Apr 25, 2013

Quote from emg:

Here is an interesting article:

http://www.chicagotribune.com/busin...-data-leak-20130424,0,4124230.story?track=rss

HFT will stop small traders out. HFT will blow small traders far away.

More than 90% of small traders lose! They just lose!

http://www.bloomberg.com/news/2012-...-seen-profiting-at-small-firm-expense-1-.html

Chickens (small traders) are coming home to roost

emg · Apr 25, 2013

Quote from emg:

Quote from lemarche:

BlueTurtle if you don t use stops you expose your self to massive losses once your strategy, whatever it is, doesnt work anymore. for a defined stop in % and a defined win rate ratio you can calculate your expectancy. it is that simple. high school maths. that you won not using them does not mean you will win in the long term..

small traders just lose. "it is that simple high school math." and why do small traders lose? because they are using stop orders.

To trade in the futures, the minimum capital requirement is $500,000. Recommend $5 million. 1 contract per $100,000. But, small traders do not have that kind of capital. They poor and lower educated. They have to place stop to lose while HFT whip small traders away. HFT are higher educated traders.

all in all, u place stop to lose

lemarche · Apr 25, 2013

YUP. because they don t use stops. and they did not check the high school maths, which the HFT did...

lemarche · Apr 25, 2013

you do not need 500,000 to trade futures...

but you certianly should never use more than 3/10x leverage (comes from the high school maths..).

French index futures are worth "only" 37000â¬.. so 5k for 1 lot is good enough

cornix · Apr 25, 2013

I use x25 leverage for conservative trades.

lemarche · Apr 25, 2013

if you have tight stops that s fine. the real parameter is the stop, not the leverage, but the higher the leverage, the tighter the stop..

you need more experience then, ie more patience to enter right point and discipline to take losses early

cornix · Apr 25, 2013

Quote from lemarche:

if you have tight stops that s fine. the real parameter is the stop, not the leverage, but the higher the leverage, the tighter the stop..

you need more experience then, ie more patience to enter right point and discipline to take losses early

Yea, hard stop defined by stats. Just a few ticks as I day trade.

lemarche · Apr 25, 2013

pure scalper then? you use tick and 1min graph max? i do some scalping but usually prefer day trades where i aim to make at least 10 pips. i try to limit to 10x

cornix · Apr 25, 2013

Quote from lemarche:

pure scalper then? you use tick and 1min graph max? i do some scalping but usually prefer day trades where i aim to make at least 10 pips. i try to limit to 10x

I prefer to call it intra-day swings.

Small stops and larger targets mostly, trying to catch intra-day trends.