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  1. #1
    Trader rinaji's Avatar
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    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

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  2. #2
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    Well this is a very new strategy, i think i never heard about this strategy rina ji before personally i like to do trade by following market trend this type of trading strategy is very differ from my own analysis and trading strategy i need a lot of practice for this i will try to test this strategy also and hope you will add more screenshots in near future in this thread

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  3. #3
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    [lang=id]basket trading is a good system to collect many pips per periods, and the traders who did this system will have good ability to analyze the market and knew some pairs characteristic where they will take some pairs that have same direction and also opposite each others, i ever tried to learn it, but i still got confusing and with them,
    well, this is a nice thread to learn and will increase my ability, i follow to read,[/lang]

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  4. #4
    Trader rinaji's Avatar
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    Quote Originally Posted by samprazaan View Post
    [lang=id]basket trading is a good system to collect many pips per periods, and the traders who did this system will have good ability to analyze the market and knew some pairs characteristic where they will take some pairs that have same direction and also opposite each others, i ever tried to learn it, but i still got confusing and with them,
    well, this is a nice thread to learn and will increase my ability, i follow to read,[/lang]
    But this is not basket trading mate, but I think you are confused with my words in this thread, it is not a problem, for the moment I can not talk much about this trading journal, because as I hope that this strategy was created for long term sniper, and as I've said before that maybe I just find several good moment for entry in a year, because my target is hundreds or even thousands pips per trades. It's just a form of casual trading. For the moment I am still trying to hold a short position in eur/jpy.

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  5. #5
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    Quote Originally Posted by rinaji View Post
    But this is not basket trading mate, but I think you are confused with my words in this thread, it is not a problem, for the moment I can not talk much about this trading journal, because as I hope that this strategy was created for long term sniper, and as I've said before that maybe I just find several good moment for entry in a year, because my target is hundreds or even thousands pips per trades. It's just a form of casual trading. For the moment I am still trying to hold a short position in eur/jpy.
    I think I am just getting cleared about this system of yours, it means it is a longer term trading system that will hold for more than months. If this is the case, what are the crossing and the stop loss work in this as you labeled it stop loss only? Its a long explanation though, and it could be confusing with much explanation by the author.

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  6. #6
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    Quote Originally Posted by rinaji View Post
    But this is not basket trading mate, but I think you are confused with my words in this thread, it is not a problem, for the moment I can not talk much about this trading journal, because as I hope that this strategy was created for long term sniper, and as I've said before that maybe I just find several good moment for entry in a year, because my target is hundreds or even thousands pips per trades. It's just a form of casual trading. For the moment I am still trying to hold a short position in eur/jpy.
    [lang=id]well, i was wrong with it, please forgive me and now , i am trying to understand it because i got the problems with my english and i do not want to use google translate because the results made me more confusing, i need to get the understanding clearly with read again and again, thank you and please guide me[/lang]

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  7. #7
    Trader rinaji's Avatar
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    Quote Originally Posted by cozard007 View Post
    I think I am just getting cleared about this system of yours, it means it is a longer term trading system that will hold for more than months. If this is the case, what are the crossing and the stop loss work in this as you labeled it stop loss only? Its a long explanation though, and it could be confusing with much explanation by the author.
    Mate, if I say stop loss only, then Am I wrong when you find my chart that I only use a stop loss, without take profit, because I just closed position manually.
    What crossing did you mean? Trend line crossing? Am I wrong that I use trend line crossing for long term trading? Am I wrong to using D1 time frame to hold more than months? If I use m5 time frame and then hold more than months, then it must be questioned.
    Quote Originally Posted by aris90 View Post
    Dear rinaji, i have read one by one your thread about stop loss only. It is interesting trading strategy, but I think this strategy is your trial trading strategy. I guess you have many more other trading strategy. I wonder that you upload your history about result your strategy in 2011. But your thread is created in 2014.
    I want ask what the account do you use? Is it demo or real account or it is cent account? Thanks.
    Mate.., I just do backtest and some forward test using a robot. You can do that if you want... lol
    Mate, if you've seen all the results from the first page to the last page, then I am sure you will think that I have a good strategy, but you are wrong, it is a grid trading, with no analysis at all, but I just set the risk to reward ratio. So here I conclude that the risk to reward ratio is the key to be profitable, whatever our strategy, it does not matter if we can be precise in the use of risk to reward ratio for our strategy. It's just based on my experiments, I am just a member who is still learning. Not intended to be a teacher. I'm just like you, here I am just learning.
    Quote Originally Posted by samprazaan View Post
    [lang=id]well, i was wrong with it, please forgive me and now , i am trying to understand it because i got the problems with my english and i do not want to use google translate because the results made me more confusing, i need to get the understanding clearly with read again and again, thank you and please guide me[/lang]
    Mate, I also have problems with my english...

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  8. #8
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    Quote Originally Posted by Khimi234 View Post
    Well this is a very new strategy, i think i never heard about this strategy rina ji before personally i like to do trade by following market trend this type of trading strategy is very differ from my own analysis and trading strategy i need a lot of practice for this i will try to test this strategy also and hope you will add more screenshots in near future in this thread
    Stop loss is very important for all traders because if you will never use the stop loss so then you can loss all your money... and even you can loss your hope and then you can destroy in the market. you must always use the stop loss so then you can be safe in the market. and then you can become a good trader but you must check the right range of market movement and then you can make right selection of stop loss..

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  9. #9
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    Quote Originally Posted by ptcdirectory View Post
    Stop loss is very important for all traders because if you will never use the stop loss so then you can loss all your money... and even you can loss your hope and then you can destroy in the market. you must always use the stop loss so then you can be safe in the market. and then you can become a good trader but you must check the right range of market movement and then you can make right selection of stop loss..
    Well using stop loss is very important to manage the risks in trading. But using stop loss is not easy because for that we need to develop our mindset to accept losses too. Every trader knows the importance of risk and money management but the problem is only few really manage their money effectively. Profits only come as a reward for our meaningful trading.

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  10. #10
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    Quote Originally Posted by AmitChallenger View Post
    Well using stop loss is very important to manage the risks in trading. But using stop loss is not easy because for that we need to develop our mindset to accept losses too. Every trader knows the importance of risk and money management but the problem is only few really manage their money effectively. Profits only come as a reward for our meaningful trading.
    I like the fact that we can make use of it when trading, it has enabled me be able to manage my trading account, even when I am not on the computer to monitor my trades. That is one most advantage of making use of it. And because of the nature of the market, as it is hard to have such good prediction all times and also as caused by human errors.

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