Stop Loss Only - Page 88

1. ## Stop Loss Only

Hello all my fellow, this time I want to build a strategy, it is purely on the basis of the inspiration that I got from a content thread created by Value trader. But I forgot which thread is.

I take an example: we made ​​10 trades, if 9 trades is ending with loss, Are impossible for us to change it into profit? As far as we still have a chance, we can still change the situation into profit. It is depends on our method in managing risk. If we put a stop loss 10 pips/ each trades, and take protit 100 pips. So the end result is, total loss + Total Profit = (9 * -10) + (1 * 100) = 10 pips profit.

Compare the contrary, for example, we are a scalper, we take profit of 10 pips for each trade, and put a 100 pips stop loss. If we get 9 win trades of 10 transactions. Then the end of the results is: (1*-100) + (9*10) = -10 pips (loss).

This is evidence that a high level of accuracy in the analysis is not a guarantee for profitable if we can not manage risk properly, in other words, is not able to set the ratio of risk: reward properly. 90% accuracy in analysis isn't mean profitable, and 10% accuracy in analysis isn't mean unprofitable.

Okay, that is a simple logic of the system that I will build.

Even so, I will start from zero, I will do a backtest for a few months back, or more than a year back, and then I will do a forward test.
For a back test, I would not use the analysis at all, I just want to know the worst of this system, I just rely on the game of risk: reward ratio.
Of course I would compare of 5 methods. So I will know which one is best, and what weaknesses and strengths of this system.

It is my plan to build this system:
1. Doing backtest in EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CHF, USD/CAD, and EUR/JPY.
I would compare 5 methods of risk: reward ratio:
- Stop Loss 25 pips : Take Profit unset. or trade using stop loss only, no take profit. But close all profit positions in the last week or last month.(My system)
- Stop Loss unset : Take Profit 25 pips. or trade using take profit only, no stop loss, But close all loss positions in the last week or last month.
- Stop Loss 25 pips : Take Profit 25 pips. or trade with 1:1 Risk Reward ratio
- Stop Loss 25 pips : Take Profit 50 pips. or trade with 1:2 Risk Reward ratio
- Stop Loss 50 pips : Take profit 25 pips. or trade with 2:1 RIsk Reward ratio.
In the back test, I would just use grid trading, (using robots), so I'm not going to use market analysis.
I use buy stop and sell stop orders, the distance of each order is 25 pips. I do not use order limit, just order stop. And the distance of the nearest pending order to the current price is 25 pips. And will always add new pending order if the price move 25 pips or more.
Just see the picture...

2. Doing forward test. Here I will determine the appropriate analysis strategies, and then do some testing, maybe I can change the method of analysis if I am still getting unsatisfactory results. Then If I've got a good and profitable system, then I will make a thread for this system, this is my journey in building strategy. A system with use stop loss only.

Thank you

2. All the trader must have to use protective measure in all of our account we have to make it sure we have good plan for trade and with successful trading we develop our plan well , so it is for all the trader that we must have to use all the protective measure to make our plan better and for getting success .

3. Originally Posted by bilal786
All the trader must have to use protective measure in all of our account we have to make it sure we have good plan for trade and with successful trading we develop our plan well , so it is for all the trader that we must have to use all the protective measure to make our plan better and for getting success .
yes protection of account is best thing if we protect our account we can earn good from it and its reality if our account is protected we can trade with relax mind. but if we do not protect account we can not trade with relax mind and in trading it also matter. when we are relax we can take right decision if we are not relax we can not determine market and all things. so our personal relaxation also matter some time for us

4. Originally Posted by touqir
yes protection of account is best thing if we protect our account we can earn good from it and its reality if our account is protected we can trade with relax mind. but if we do not protect account we can not trade with relax mind and in trading it also matter. when we are relax we can take right decision if we are not relax we can not determine market and all things. so our personal relaxation also matter some time for us
you are right i give high importance to personal mind behavior, if we have relax we can really think clearly and can take right decision, before some years when i was new i face one thing a lot of time i was having smaller capital so after losing some part i always tried to recover in some hours and for this i used big lot so that thing just ruined my capital, so if we do not have control on mind we can lose remaining also, our relax mind can give us idea what to do next

5. Originally Posted by naeem555
you are right i give high importance to personal mind behavior, if we have relax we can really think clearly and can take right decision, before some years when i was new i face one thing a lot of time i was having smaller capital so after losing some part i always tried to recover in some hours and for this i used big lot so that thing just ruined my capital, so if we do not have control on mind we can lose remaining also, our relax mind can give us idea what to do next
It is the first thing we try for good trading because if we have positive mind set so then it will be easier for us to chose any trading strategy and if we perform with consistent and calm behavior so that will increase our trading capacity and we have develop good trade handle them with good decision making .

6. We must protect our capital before we can survive for a long time, trading without any means of capital protection will make it easy for us to blow our trading account, we need to protect our capital with the help of stop loss before we can survive for a very long time, stop loss is important and will always be important in as much as forex is concern.

7. Originally Posted by Eneregha
We must protect our capital before we can survive for a long time, trading without any means of capital protection will make it easy for us to blow our trading account, we need to protect our capital with the help of stop loss before we can survive for a very long time, stop loss is important and will always be important in as much as forex is concern.
yes its important and can help us but still stop loss can not give us profit all the time, it can give us loss also if we do not have good and enough analysis here, when we do not have good analysis it can happen every time our sl hit, so for avoiding that situation we need to work properly here, we need to work with experience and good management

8. We must use stop loss point in trading because without use stop loss we can loss all money. We must focus on learning and use those trading methods that are help traders to earn profit on forex market on daily basis. We must use stop loss and take profit point in every trade and use tight stop loss point in trading traders success will become easy.

9. Originally Posted by naeem555
yes its important and can help us but still stop loss can not give us profit all the time, it can give us loss also if we do not have good and enough analysis here, when we do not have good analysis it can happen every time our sl hit, so for avoiding that situation we need to work properly here, we need to work with experience and good management
Stop loss is important but its also important to use a strong trading method in trading. Use that indicator which is help us to understand the market trend well. Traders success is possible only when they are use take profit and stop loss point with care and make the market proper analysis of market trend and traders success become possible.

10. Originally Posted by biru
Stop loss is important but its also important to use a strong trading method in trading. Use that indicator which is help us to understand the market trend well. Traders success is possible only when they are use take profit and stop loss point with care and make the market proper analysis of market trend and traders success become possible.
When you are talking about the trading method, then the stop loss use is part of it. If the trading method of the trader is bad, then the trader will never be successful in the market. Success entails a lot of things, and traders should make sure they use the best strategy and management mainly. It is among the managerial plans of traders that the use of stop loss at the right place must be actualized.

11. Originally Posted by ajagbeolegba
When you are talking about the trading method, then the stop loss use is part of it. If the trading method of the trader is bad, then the trader will never be successful in the market. Success entails a lot of things, and traders should make sure they use the best strategy and management mainly. It is among the managerial plans of traders that the use of stop loss at the right place must be actualized.
if trading method is bad it not means we can not get success here, we can make it right we can correct mistakes by using it on demo account for long time, when we use it on demo we can check how it works and how we can change it. so do not lose hope and just think positive some time we can lose but this is our beginning not ending

#### Posting Permissions

• You may not post new threads
• You may not post replies
• You may not post attachments
• You may not edit your posts
•