the holy grail doesnt exist, but what about a system that also alerts when something goes wrong

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mrluck1
926
mrluck1  

its impossible to predict the market 100% of the time, no matter the tactic,but what if the holy grail is really a system that

has a good accuracy but also, it tells you when you are losing before big loss, maybe that is the true perfect system 

whroeder1
17942
whroeder1  
mrluck1: it tells you when you are losing before big loss,
  1. What big loss? You shouldn't ever trade more than a tiny percent of your account (1%) on any one trade.
    • You place the stop where it needs to be - where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.
    • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the SPREAD, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
    • Do NOT use TickValue by itself - DeltaPerLot
    • You must normalize lots properly and check against min and max.
    • You must also check FreeMargin to avoid stop out
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