Stop Loss and Profit Areas Strategy : Money Management Skill Query

Discussion in 'Strategy Building' started by creatorofmatrix, Apr 20, 2021.

  1. Tradex

    Tradex

    No need to be sarcastic with OP, there are millions of people who have never heard of Google either, as we speak.
     
    #31     Apr 20, 2021
  2. Justrade

    Justrade

    This here is bad risk management...
     
    #32     Apr 20, 2021
    murray t turtle likes this.
  3. Yes I am still learning. Thats why ended on this forum. If you can give some insights.
     
    #33     Apr 21, 2021
  4. Justrade

    Justrade

    Have you run any backtests
    Try trailing stops -
    Test Trailing stops with different parameters - Like 2x ATR or % ATR, Low/High of last n days, closes, time exits, moving average of close below moving average of lows
    There are a myriad of stop types to use
    Google Stops

    Look up MFE and MAE and analyze it
    The MFE is the opposite of the MAE and it measures the largest observed profit during a trade
     
    #34     Apr 21, 2021
  5. %%
    Mostly bad risk management ;
    but if limited to 2 trades per stock ETF/ reasonable trade size/ could work real well. Even more so as he gains experience...........................................FOR short term trading,3 tries most likely will be worse than 2 tries.[UNless you do focus on a few+ you said you are not,ok] {EDIT=worlds worst reason to trade/make up for a loss]

    IF he increases size,[2nd time to enter] most likely the worst thing he can do.
    Single buy or even single sell may tend to underperform a bit; but if he is trading to big like most of us did@ first/a single buy could outperform/LOL.
    [I use a 50day moving average, not of the lows.......... but its not much difference]Some experment with lagging 50dma + front running it, I do both.............................................................................................ACTUALLY with low or NO comissions, can be better to seldom add to a position, but that can be a a rare pattern; or a key reversal.........
     
    #35     Apr 21, 2021
    creatorofmatrix likes this.
  6. Yes but my lot quantity is enough to cover my losses when I enter reverse after a successful trade. The probability of a losing trade is very low if I exit and enter in the reverse direction after exiting a false trade. Moreover as I am new I still dont able to control my emotions so three trade is kind of emotional stop for me to close and exit my trading station. A sort of discipline so that I would not take a trade with a clouded judgement and face more losses. I am working on it more day and improving my skills.
     
    #36     Apr 21, 2021