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What is the best way to manage loosing trades?

Arcferreira (Arcferreira)
Dec 18 2017 at 07:17
50 posts
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.

Trade safely... Remember, a high Drawdown means a high risk!
Russ
UsdCadBoss (UsdCadBoss)
Dec 18 2017 at 07:26
6 posts
Place a stop loss at support or resistance based on your entry and trading time frames. Always use a stop loss in leveraged trading.

VladoIvo
Dec 18 2017 at 14:45
11 posts
I would keep away from grids and martingale. ALWAYS use a stop loss and the loss management will take care of itself

profijet
Dec 18 2017 at 14:54
134 posts
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

Arcferreira (Arcferreira)
Dec 18 2017 at 15:15
50 posts
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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