When to Stop Trading After Losses

I use NT8, but do all backtests manually. Takes a lot of time but gives a lot of information and sometimes even a golden nugget.

I am a discretionary trader.

 

SimpleMeLike trades manually.

You should only stop if a string of losses has influence on your emotions;
like revenge trading of looking for "set-ups" on slow days.

Look in the mirror,
walk away,
Restart.

 

Nice thinking - hard work.

 

Thanks for the response virtusa and everyone else,

@danielc1 , @Dazz , @519569 , and anyone else who wants to comment....

My day trading time limits are 7am to 11:30am central, then I have to go to work.

During this time limits, when I am back testing I should take all trades signals available and ignore money management and PnL balance?

For example, what if during back testing on one day I have 15 losses in a roll from 7am to 11:30am, I should record this data during the back testing?

Thanks,

 

You should stop trading and improve your trading system. 15 losses in a row is a clear proof your system sucks.

 

useful to stratify trades P/L as those before 9:30 est and those after; I have found dramatic steady differences between Europe vs. US, especially for 6B/E and ES/NQ/YM

 

Morning Dazz,

Thanks for response

What do you mean by "useful to stratify trades P/L as those before 9:30 est and those after" ? I am not sure I understand you.

Thanks

 

I track P/L performance for longs and shorts taken before 9:30 am vs those taken after 9:30 am. The behavior and P/L outcomes can uniformly vary dependent on when the trade is initiated. The European environment is different than the US in ways that affect trades, sometime black and white. For example, my short CL bots trades tomorrow on GC have aver -$393 before 9:30 and +$1062 after 9:30. Want to trade before or after 9:30????

 

Why shouldn't you record that data?

You need that data so you can adjust your money management accordingly. In order do so you need data from both your profitable trades and your losing trades, all of them.

 

Thanks DevBru,

I agree with you. Just wanted to get input. I believe during back testing, all signals should be taken.