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

Discussion in 'Risk Management' started by emg, Jun 20, 2011.

  1. LFT = retail traders

    also, those using some features of their trading platforms (irrespective of which one, one chooses) have some automation features, that allow them to conditionally pre-position orders based on an acceptible and selectable criterion

    incidently, there are reports that a number or firms using automation were prepositioned with massive sell short orders in advance of that event...

    nothing beats suspicion like paranoia or confirmation....
     
    #441     Apr 25, 2013
  2. 94.2% of applicants fail to get into Harvard. They just Fail!!!!!




    nvm, higher education was a different thread

    Just thought it was funny in relation to "90% of small traders lose "

    Oldtime got it right, 95% fail at everything they try, just don't wake up tomorrow :D :D

    I think the difference is, who quits trying and who doesn't.

    have to go adjust my stops now:)
     
    #442     Apr 25, 2013
  3. cornix

    cornix

    In my case posted TA showed short BEFORE the actual drop and thus no slippage would occur as well as price never ticked any much above the hypothetical entry.

    All a matter of timing. :)
     
    #443     Apr 26, 2013
  4. Word!
     
    #444     Apr 26, 2013
  5. Visaria

    Visaria

    I don't know any HFT firms myself. Just rumours, that's all.
     
    #445     Apr 27, 2013
  6. True. 95% always look for the easy road and shortcuts. God bless them. :) otherwise, the competition will be even harder. :D
    ( i just wouldn't say "at everything", I would say at everything worthwhile. Eventually they settle and get on.)
     
    #446     Apr 27, 2013
  7. the1

    the1

    70+ pages on no stops in the futures market. I started a thread like this a while back and when you say "no stop" it really brings folks out of the woodwork. FWIW, I agree with the OP but only to a point. If your stops are physically located near the market you're going to get "randomized" into guaranteed losses. That being said, a disaster stop, away from the market, is absolutely mandatory. My stops for routine losses are 100% mechanical (mental) and my disaster stop is 100% physical.

    A mental stop near the market lets you control your trade whether for profit or loss. You just have to know when a trade isn't going to work and cut it. The disaster stop prevents you from getting crushed in 5-sigma event or when you have a lapse in discipline -- which happens to everyone. The 100% of the time disciplined trader doesn't exist.

    I've been trading futures for well over 20 years and I'd never put a physical stop near the market. You might as well just put your head under the guillotine.

    Trading platforms come with reverse buttons too, right?
     
    #447     Apr 27, 2013
  8. yes of course. you need to take into account the "volatility" of the time frame of the asset you are trading, knowing that that volatility is not constant (fast, slow market). if you place it too tight and enter without the needed precision you will be taken out mathematically..

    but if one uses very high leverage, i think mechanical makes sense, it forces you to enter very well into your position.

    i also mostly use mental stops because i don t use very high leverage (aiming at x10 max).
     
    #448     Apr 27, 2013
  9. the1

    the1

    You bring up a very important point -- volatility. This is thee single most important market statistic that I track and I track it in every time frame and compare the measure of volatility from one time frame to another. Ignoring this statistic is like trading with tunnel vision. You need that peripheral perspective and knowing what to do in each market, based on volatility is crucial!

     
    #449     Apr 27, 2013
  10. Visaria

    Visaria

    +1
     
    #450     Apr 28, 2013