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

Discussion in 'Risk Management' started by marketsurfer, Mar 11, 2016.

  1. 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...
     
    #221     Mar 13, 2016
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  2. speedo

    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.
     
    #222     Mar 13, 2016
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  3. 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.
     
    #223     Mar 13, 2016
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  4. samuel11

    samuel11

    I would argue that it also makes him the most qualified to talk about it :D
     
    #224     Mar 13, 2016
  5. Assuming that he learned one iota from his numerous failures...but clearly he hasn't.
     
    #225     Mar 13, 2016
  6. samuel11

    samuel11

    I know he hasn’t, just do the opposite of whatever he says
     
    #226     Mar 13, 2016
  7. botpro

    botpro

    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)
     
    Last edited: Mar 13, 2016
    #227     Mar 13, 2016
  8. destriero

    destriero


    Where is that? Dumbf*ckistan?
     
    #228     Mar 13, 2016
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  9. This is not simulated results, this is a real result.
     
    #229     Mar 13, 2016
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  10. I Know You

    I Know You

    Botpro for moderator. Amazing skills.
     
    #230     Mar 13, 2016
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