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

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

  1. botpro

    botpro

    Can you prove it? And what kind of system and its trading style (timeframe etc.) do you mean?
     
    Last edited: Mar 14, 2016
    #261     Mar 14, 2016
  2. botpro

    botpro

    What does the entry have to do with the stop, if any?
     
    #262     Mar 14, 2016
  3. botpro

    botpro

    If there were no losers, then nobody would make any profit... :banghead: :p
     
    #263     Mar 14, 2016
  4. That's correct. I am so happy that there are losers:D.
     
    #264     Mar 14, 2016
    botpro likes this.
  5. The better the entry, the less you will need a stop. Simple logic,but very important.
     
    #265     Mar 14, 2016
    I Know You likes this.
  6. Exactly, because the definition of a stop is: the place where the profits should be protected maximal while reducing the losses to the minimum.
     
    #266     Mar 14, 2016
    I Know You likes this.
  7. botpro

    botpro

    But that would mean that you can correctly forecast the path of the trade...
    How is your success rate in predicting the direction of the trade? And over which timeframe-lengths does it work best?
     
    Last edited: Mar 14, 2016
    #267     Mar 14, 2016
  8. botpro

    botpro

    And what do you do immediately after entry when the trade runs against you?
    You get stopped out... multiple times makes a big sum... :banghead:

    But I get your point: a good planning for the entry point is a good thing to do, right.
     
    Last edited: Mar 14, 2016
    #268     Mar 14, 2016
  9. Knowing the definition is important. Next challenge is trying to apply it as good as possible.
    So first you need the knowledge to know what to do, and next the knowledge to do it.
    I am happy with my success rate because at the start is was a "suck"sesrate.
     
    #269     Mar 14, 2016
  10. No, getting stopped out all the time means your system entries are not good.

    If you have good entries you have more possibilities to try for free as you might be able to close a bad trade before losing money.
     
    #270     Mar 14, 2016
    WeToddDid2 likes this.