Discussion of article "Fix PriceAction Stoploss or Fixed RSI (Smart StopLoss)"


New article Fix PriceAction Stoploss or Fixed RSI (Smart StopLoss) has been published:

Stop-loss are a major tool when it comes to money management in trading. Effective use of stop-loss, take profit and lot size can make a trader more consistent in trading and over all more profitable. Although stop-loss is a great tool, there are challenges that are encountered when being used. The major being stop-loss hunt. This Article look on how to reduce stop-loss hunt in trade and compare with the classical stop-loss usage to determine its profitability.

The search for a holy grail in trading has led me to this research. Stop-loss is the most important tool in trading when money management is concerned. Money management is among the different ways a trader can  make money in the market and be consistent in the long run. As stated earlier, money management is strongly associated with stop-loss and risk-reward ratio. The 1:1.5R (Risk:Reward) ratio tends to have higher win-rate when compared to other Risk:Reward’s win-rate but the  1:>1.9R(Risk:Reward) ratio most time tends to be more profitable and keep a trader in consistent profit over a long period of time (Holy grail). This “Holy grail '' trading strategy has it down side. In an Ideal situation, Trading with 1:>1.9R(Risk:Reward) will be profitable if , out of 10 trades( 1pips each),  6 trades were lost(6 pips), and 4 trades were gained (8pips). This means we are in profit by 2 pips. In the real-life application, it might not be all true. One major factor that contributes to this is a term known as “Stop-loss Hunt”. Stop-loss Hunt is when a trade hits your stop-loss for liquidity then moves in the direction you predicted. Stop-loss Hunt is a major issue in trading and money management. It also has a psychological effect on traders (mostly new traders).

Stop-loss Hunt

Author: vwegba

where is TP ?
Andi Chandra Wijaya

How to convert to MQ4? I try to copy paste to metaeditor MT4 but there is some errors

could you please convert it to mq4? thankyou