Discussion in 'Forex' started by Scarab, Mar 18, 2004.
Hey, listen to this guy.
Stops are just a TOOL.
There are profitable systems that use:
1) tight stops
2) loose stops
3) no stops
There are no truisms when it comes to stop.
I submit... Systems which trade with "no stops" are merely temporarily profitable. The circumstance which will bust them out just hasn't occurred yet.
gnome, how long a period do you consider "merely temporary?"
I know a trader who has been trading fx for 3 years - he never uses a stop.
I been trading over a month I use no stop and have never wiped out.
Your simply wrong.
I have a system that tests very well for over 10 years with no stops.
However, I will not share it with you just to prove you wrong
Experienced system developers are aware of systems with no stops that are very tradeable.
I will confirm axeman's statement.
I know of a local trader, who doubles his account yearly and is using no stops. I have seen his account statements and I know his system.
But I will not trade this guy's system as the equity swings are too big for my temperament.
The most extreme example I know of was written up in Futures Magazine in '85 or '86. Some guy had gone 20 years without a single losing trade... then wiped it all out + a 75% margin call in one event. The market finally went against him "more than it had ever done before".
Unfortuately, it only takes once.
A WHOLE month? That IS a long time.
The obvious proof of such a system with no stops is: "BUY AND HOLD".
In fact, this simple system with NO stops, beats over 90%
of fund managers in a 10 year period
Can YOU say that?????????
You said it... "... the equity swings are too big..." One day, the equity won't rebound... just hasn't happened yet.
Trade without stops if you like, but don't say you weren't warned.
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