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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 ?

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

Using the RSI for Stop Loss means that you dont know what your risk is and cannot set the order volume appropriately

KRiordan #:

Using the RSI for Stop Loss means that you dont know what your risk is and cannot set the order volume appropriately

The position is calculated from the price action, where you intends adding the stoploss. Since rsi is similar to line price action chart, we used the rsi instead of the price action chart. Also you are right that's the major issue with the strategy

I think I can understand that.

Files:
StopLossCazado00.jpg  39 kb
SLnoCazado00.jpg  53 kb
how to use it on metatrader4?
2022.01.12 10:05:52.354 2022.01.06 13:23:54   CTrade::OrderSend: market buy 239.52 EURUSD tp: 1.13301 [invalid volume]
2022.01.12 10:05:52.354 2022.01.06 13:23:54   failed market buy 239.52 EURUSD tp: 1.13301 [Invalid volume]


Both zip files got this Error repeatedly

Essi afsoungar #:
2022.01.12 10:05:52.354 2022.01.06 13:23:54   CTrade::OrderSend: market buy 239.52 EURUSD tp: 1.13301 [invalid volume]
2022.01.12 10:05:52.354 2022.01.06 13:23:54   failed market buy 239.52 EURUSD tp: 1.13301 [Invalid volume]


Both zip files got this Error repeatedly

Your broker probably has a maximum lot size volume of 100 or 200 lots, so trying to open a 239.52 lots trade won't work.

Eleni Anna Branou #:

Your broker probably has a maximum lot size volume of 100 or 200 lots, so trying to open a 239.52 lots trade won't work.

i have liteforex...why the expert wants to buy 239lots on my 1000$ account????? :\

i restarted the expert and metatrader.new errors: not enough money

see the attached picture

Files:
Untitled.jpg  301 kb
Essi afsoungar #:
i have liteforex...why the expert wants to buy 239lots on my 1000$ account????? :\

Because you are using the wrong risk/lot size setting I guess.

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