What is the best way to manage loosing trades?

Nov 08, 2017 at 07:27
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14 Replies
会员从Nov 13, 2015开始   12帖子
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)
会员从Dec 03, 2015开始   31帖子
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.
会员从Aug 27, 2017开始   994帖子
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.
会员从Nov 08, 2017开始   11帖子
Nov 08, 2017 at 15:54
Decide in advance when you will close the trade and set a stop loss at that level
会员从Sep 10, 2009开始   134帖子
Nov 08, 2017 at 16:34 (已编辑 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.

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会员从Aug 27, 2017开始   994帖子
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.
mmltd
forex_trader_449466
会员从Aug 04, 2017开始   31帖子
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.
会员从Dec 12, 2017开始   10帖子
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
会员从Feb 29, 2016开始   10帖子
Dec 17, 2017 at 13:48
Always have an exit strategy.
会员从Dec 11, 2015开始   1487帖子
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.
会员从Mar 02, 2017开始   50帖子
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.
Trade safely... Remember, a high Drawdown means a high risk!
UsdCadBoss
forex_trader_483142
会员从Dec 17, 2017开始   6帖子
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.
会员从Nov 16, 2017开始   11帖子
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
会员从Sep 10, 2009开始   134帖子
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
会员从Mar 02, 2017开始   50帖子
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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