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What is the best way to manage loosing trades?
Miembro desde Nov 13, 2015
posts 12
Nov 08, 2017 at 07:27
Miembro desde Nov 13, 2015
posts 12
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)
Nov 08, 2017 at 15:39
Miembro desde Dec 03, 2015
posts 31
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.
Miembro desde Aug 27, 2017
posts 994
Nov 08, 2017 at 16:34
(editado Nov 08, 2017 at 16:36)
Miembro desde Sep 10, 2009
posts 134
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.
Miembro desde Aug 27, 2017
posts 994
forex_trader_449466
Miembro desde Aug 04, 2017
posts 31
Nov 10, 2017 at 10:41
Miembro desde Aug 04, 2017
posts 31
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.
Miembro desde Dec 12, 2017
posts 10
Dec 17, 2017 at 08:21
Miembro desde Dec 12, 2017
posts 10
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.
Miembro desde Dec 11, 2015
posts 1487
Dec 17, 2017 at 14:51
Miembro desde Dec 11, 2015
posts 1487
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.
Miembro desde Mar 02, 2017
posts 50
Dec 18, 2017 at 07:17
Miembro desde Mar 02, 2017
posts 50
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!
Dec 18, 2017 at 14:54
Miembro desde Sep 10, 2009
posts 134
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
Miembro desde Mar 02, 2017
posts 50
Dec 18, 2017 at 15:15
Miembro desde Mar 02, 2017
posts 50
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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