Why is trading without stop-loss considered absurd for many! - page 18
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How much does the robot catch on the news?
I personally haven't seen a single one that's completely profitable with the news helicopter.
And this one's even more so.
2,500 pips in 30 minutes.....
Only a stop loss helps here.
Why Stop Loss ONLY? The volume of the position in such situations is preferable: first, a stop-loss would lock in the maximum (compared to a pullback) loss and, second, after such moves a pullback of 60% or more occurs.
Why Stop Loss ONLY? The volume of the position is preferable in such situations: first, a stop-loss would lock in the maximum (compared to a pullback) loss and, second, after such moves a pullback of 60 percent or more occurs.
The volume of the position allows withstanding such drawdowns until a stop-out occurs. For example, with a $1000 deposit and 1:100 leverage, with 0.1 lot size and with a stop out of 40%, your position would hold a drawdown of 962.0 pips on USDJPY.
Yeah. And now calculate how much of the deposit would have to be to trade with 0.01 lot to avoid losing the USDCHF at a 7185 pips spike.
That is, to trade with a paltry return and at the risk of losing the entire deposit in one trade?
How many such spikes have there been in the history of forex?
Sooner or later the trader increases the lot size in order to get a normal profit compared to the deposit, at least more than 10% per year, everybody does it, otherwise there is no point in trading - it is easier to take it to the bank, there is no point in keeping mio on the deposit and trading 0.01 lot. This is where the surprise comes in - hello from Uncle Morzhov. Reversal without stops is inevitable, like "death and taxes".
Look at the quotes of such popular symbols as EURUSD or GBPUSD - they have had a dozen of spikes of 1000 points or more this year. Well, think about how many of such spikes there have been in the Forex history, taking into account the ratio of the traded lot to the deposit amount.
You can write a simple script, in which you specify your deposit and traded lot, let the script run through the whole history for all trading instruments in the market review, the rose-colored glasses will fall instantly on completion of the script.
Sooner or later the trader increases the lot size in order to get a normal yield, at least more than 10% per year, everyone does this, otherwise there is no point in trading - it is easier to take it to the bank. That's where the surprise comes - hello from uncle Morzhov. Sinking without stops is inevitable, like "death and taxes".
Look at the quotes of such popular symbols as EURUSD or GBPUSD - they have had a dozen of spikes of 1000 points or more this year. So think about how many of such spikes there have been in the Forex history, taking into account the ratio of the traded lot to the deposit.
Trading without stops is contrary to common sense, because the loss is not limited to anything, which means you are not respecting the MM, there is no predictable risk per trade!
In case of a force majeure (the Internet in your area is down, your computer burns out, your phone runs out of power, etc.), you can sit in a deep puddle!
Even if you sit in front of the monitor all the time and are ready to close the deal by hand, you still lose a few points + losses on slippage and spread widening!
P.S.: for me, as a scalper, every point is important, giving it to someone is stupid, even if it's 1 point, with 1000 trades I will lose a lot of money!
From the monthly chart of the EURUSD we can see that the price is making oscillatory movements. We see a directional movement in one direction and then a pullback in the opposite direction. That is, the drawdown when moving in one direction is then compensated on the pullback. With such patterns, in my opinion, it is foolish to fix losses. And a stop loss is a FIXING of a loss!
And yes, I don't believe a word this young lady says.
=)))