Brendan777 posted: A hint for you newbie SP users, sometimes when facing deep DD, you need to set your own level 3, 4, 5, and etc. for retracements (SP only sets 2 levels, woefully inadequate). That's how I got out of the current mess, and probably the same way Ken did it.
I have become much more proactive in managing SP’s losing trades. I am using a 105 pip stop loss on each trade and I am adding another trade every 30 pips after Sp put its second trade on. I did get stopped out of the first two trades. The second trade did not hit the stop, but the stopreset_pw ea took me out at 80 pips for some reason. I have switched over to the Swiss Army Knife for stop loss management now. I hope it performs better. I was 6 trades deep by the time price turned. It was interesting to watch as Empire Robot took the exact same trade, but it put its first trade on a little after Sp took its second trade. I was 6 deep on Sp and 5 deep on Empire. I was trading 1.67 lots per trade on Sp, so Friday, I got hit with a $3,300 loss. Monday, the remaining 4 trades closed at a $2,785 profit. So I lost 515 bucks on this excursion. Had that second trade not been closed by mistake, I would have made 900 bucks.
Every time you take a trade, you risk a 250 pip loss on one trade and, on a pair of trades, you risk about 470 pips. If you size your trades properly, and carry a reasonable stop loss (proven through the examination of trades, and not just some number pulled out of your ass because it just feels right) you can afford to put on more trades manually, every 30 pips, and have no more exposure than what you have using their default stops on two trades. Now, you can bitch and moan about automation, hands free, blah, blah, blah, but I have never had an EA that I have not had to intervene on at one point or another. Like it or not, this is not growing a garden, its balancing a baseball bat on your nose. I manually compound my trade sizes after every trade, and I will manually adjust every trade that goes south on me. It really is a small price to pay one every couple months.
For the most part, Sp’s trades are in and out pretty quickly. For those occasional ones that don’t, once the second trade opens, I put limit orders another 4 trades deep every 30 pips. That’s’ it. Now you’re in monitoring mode. When price turns, you can close out the trades for a profit and cancel your remaining limit orders.
If you don’t understand trade sizing, you need to. If a 1,000 pip SL scares you more than 100 pip stop loss, then you do not understand trade sizing. Trade sizing brings all Stop Losses into equality. Size your trade and you will not lose any more on a 1,000 pip stop than a 100 pip stop. Sp is still drawn down 4/5ths of their big hit. With proper trade sizing, you would have already broken out to new equity highs since that draw down. You will not make as much as them on a percentage basis, but your returns will be very good and more consistent. It’s the difference between being successful and finding ever new and inventive ways to offer what you bought to the lowest bidder (read bitching).
I cannot stress enough, the importance of running multiple EA’s. While you care about what each account does, you care more about what your portfolio does, and if it’s all in one account, that ain’t good for the portfolio. Last week, even with the $3,300 hit on Sp, I closed the week out with only a 43 dollar loss. Tonight, now that everything has closed on Sp and Empire, along with my other systems, I’m up 6 grand since the market reopened yesterday.