Drawdown or Stop Loss
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thread: Drawdown or Stop Loss

  1. #1

    Drawdown or Stop Loss

    Guys I need people opinion about the pros/cons in relation to...

    1. Not using a Stop Loss and holding the transactions but probably lead to drawdowns.

    2. Utilize a Stop Loss when the Trend goes against you and Have a hit?

    I have a Expert that does very well in ranging markets but gets all twisted in an upward trend. High floating reduction and reduced remaining margin.

    But in general trading terms, manual or automated, which do you want?

  2. #2
    Guys I want peoples opinion on the pros/cons in regards to...

    1. Not hauling the transactions but most likely and employing a Stop Loss lead to drawdowns.

    ....
    Hello Superion,

    The emotional pain of holding large (and rising ) drawdowns much, far far surpasses the financial pain. It is emotionally devastating!!!!

    The very first question you should be asking yourself is why should I put myself through the pain of suffering from large drawdowns?????

    The next question is there a more economical way to prevent the pain???



    .

  3. #3
    1 Attachment(s) You need to use stops. It only takes one bad trade to kill you. The Robinhood EA is a fantastic example.

    Out Of collective2:

  4. #4
    Senior Member Rororo93's Avatar
    102
    Stop loss. Drawndowns will get you killed, and drawdowns inflict psychological distress. Try it and you will see. No, actually, try it. You will see that sl is the best option. Be disciplined, take losses, and decrease them by using risk and cash management

  5. #5
    Junior Member Mesbahi's Avatar
    15
    You can also consider a timed stop reduction... you exit a trade if it doesn't go in your path for a particular time period.

  6. #6
    I immediatley thought of Jacko, when I saw the thread and I see he has already been here. This idea comes from his thread, although not his exact wording:
    Why not put a 100 point stop loss ( or whatever amount suits your method) and if you get stopped out tight and see if the trend resumes. Reenter in the stage your stop took out you, if it does. Give the pullback room before you reenter to avoid getting chopped .
    Read his thread for more detail.
    Back to the first question--I constantly use a stoploss. Stand on the tracks when you find the train?

  7. #7
    Junior Member dokoxke's Avatar
    29
    No doubt about it, prevent losses are very crucial. Unless you are investing in VERY VERY long duration, have a massive account and can handle tens of thousands of pips drawdown, over a very long time (even years), then you have to stop losses!!

  8. #8
    Junior Member jofremmh's Avatar
    24
    I was using no SL, it had been good, but bring lots of pain, and little profit, I just could use leverage and slow pair such as usd/jpy.

    Eventually I cracked up, and devastate everything.
    I now use SL, I mean, wait till it is favorable and put 1 pip SL, learning scalping such as entry to put a longer position. Mostly it still hit SL and I trade high bottom.


    Ps: never fearful of SL, simply enter again on greater price, you won't lose a thing

  9. #9
    I have to agree. . Always use ceases. Losses will inevitably happen at some point and are a part of trading. You have to keep losses small, never risk huge losses and let profits run. .

  10. #10
    Junior Member noirazo's Avatar
    2
    What about hedging or proceed opposite path and TP on both sides when it starts to reverse again... or if it persists then discontinue out with fixed loss (when you enter the market )?

    Just a thought...

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