What is the best way to manage loosing trades?
Nov 08, 2017 at 07:27
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14 Replies
Membro Desde Nov 13, 2015
12 postagens
Nov 08, 2017 at 07:27
Hello everyone,
I'm interested to know your recommendation on managing loosing trades, best way to close them to prevent further loses.
Would it make sense to close a loosing trade AS WELL AS any winning trade or trades that sum the equal amount of the loosing trade...
ie. LOSSING TRADE -$10.00. (close)
WINNING TRADE +$10.00 (close)
I'm interested to know your recommendation on managing loosing trades, best way to close them to prevent further loses.
Would it make sense to close a loosing trade AS WELL AS any winning trade or trades that sum the equal amount of the loosing trade...
ie. LOSSING TRADE -$10.00. (close)
WINNING TRADE +$10.00 (close)
Membro Desde Dec 03, 2015
31 postagens
Nov 08, 2017 at 15:39
My 2 cents would be to manage every trade independently unless the strategy uses multiple entries. Losing trades should always be closed at the predetermined stop level at worst (most good risk management systems would try to close losers quicker). Otherwise they have a tendency to snowball and eventually blow the account. Thanks.
Membro Desde Aug 27, 2017
994 postagens
Nov 08, 2017 at 15:40
If you have a good trading strategy then it would be easy to you! In this case, high profit ratio helps me a lot! Usually, I don’t open any trade which offers me below 1.5% profit ratio.
Membro Desde Nov 08, 2017
11 postagens
Nov 08, 2017 at 15:54
Decide in advance when you will close the trade and set a stop loss at that level
Membro Desde Sep 10, 2009
134 postagens
Nov 08, 2017 at 16:34
(editado há Nov 08, 2017 at 16:36)
It depends on strategy and currency pairs. I enclose my testing on Parabolic SAR strategy, EURUSD. I get different results for different currency pairs. Values in screenshot are in USD.
Anexos :
Membro Desde Aug 27, 2017
994 postagens
Nov 09, 2017 at 15:47
Well, I use stop loss position thus I can avoid big losses in my trading! In addition, I follow tight money management as well as risk management policies in my trading.
forex_trader_449466
Membro Desde Aug 04, 2017
31 postagens
Nov 10, 2017 at 10:41
You should never open a trade without a plan. Not only you need a target, you also need to know when your entry is wrong and you have to get out. And I am not talking about a stop loss, you can exit manually. I call it emergency target.
Membro Desde Dec 12, 2017
10 postagens
Dec 17, 2017 at 08:21
There are web pages, such as the National Securities Market Commission (CNMV) or the Spanish Stock Exchanges (BME), in which the basic keys to improve the world of investment in the stock market you can take a look for you Familiarize yourself with concepts as important as liquidity - easy to buy and sell an action.
forex_trader_309212
Membro Desde Feb 29, 2016
10 postagens
Dec 17, 2017 at 13:48
Always have an exit strategy.
Membro Desde Dec 11, 2015
1487 postagens
Dec 17, 2017 at 14:51
That is something one's trading plan should take into account. Different strategies require different approaches, there's no one universal answer to that question.
Membro Desde Mar 02, 2017
50 postagens
Dec 18, 2017 at 07:17
There is a lot of strategies to deal with losing trades.
1) Stop Loss - soft one (based on individual trade) or hard one (based on account balance), static or dynamic...
2) Averaging and its variants (Martingale, grids...),
3) Hedging,
4) a combo of everything.
The best one??? It depends of your trading strategy.
1) Stop Loss - soft one (based on individual trade) or hard one (based on account balance), static or dynamic...
2) Averaging and its variants (Martingale, grids...),
3) Hedging,
4) a combo of everything.
The best one??? It depends of your trading strategy.
Trade safely... Remember, a high Drawdown means a high risk!
forex_trader_483142
Membro Desde Dec 17, 2017
6 postagens
Dec 18, 2017 at 07:26
Place a stop loss at support or resistance based on your entry and trading time frames. Always use a stop loss in leveraged trading.
Membro Desde Nov 16, 2017
11 postagens
Dec 18, 2017 at 14:45
I would keep away from grids and martingale. ALWAYS use a stop loss and the loss management will take care of itself
Membro Desde Sep 10, 2009
134 postagens
Dec 18, 2017 at 14:54
I would prefer martingale, but only in 3-4 steps on every new signal. If your signals are reliable, there is no need to close trade in loss. So lets say I would open 0.01 lots, than 0.02, 0.04 and finally 0.08
If market still goes against you, and 4 signals failed, close all, review strategy and restart
If market still goes against you, and 4 signals failed, close all, review strategy and restart
Membro Desde Mar 02, 2017
50 postagens
Dec 18, 2017 at 15:15
profijet posted:
I would prefer martingale, but only in 3-4 steps on every new signal. If your signals are reliable, there is no need to close trade in loss. So lets say I would open 0.01 lots, than 0.02, 0.04 and finally 0.08
If market still goes against you, and 4 signals failed, close all, review strategy and restart
People use martingale and averaging in a wrong way. When you are trading, some support and resistances will define a change in master trend. When this change happens, Martingale, grid, aversging fails miserable. But if you sell at .382, .500, .618, .786 and .886 in a Fibo retracement, but incrising your lots... it is an Averaging or Martingale strategy, with a SL at 1.000, where trend shows signs it has ended. 0.01 + 0.02 + 0.04 + 0.08 + 0.16 = 0.33 lot. I think it is better than place the 0.33 lot at 0.618 for example.
Trade safely... Remember, a high Drawdown means a high risk!
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