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1% of losses you don't want to fix, how much do you want to fix? Is 100% of the loss just right to lock in?
It is practically impossible for that to happen.
But there is a counter question - how much do you earn in % p.a. to a 1k deposit, working with 1:1 leverage?
What has to happen for me to make a 100% loss with this MM?
What is the point of me working with such a leverage? Right now I'm at the testing stage, I'm trying different things and I'm 146% convinced that SL is a route to nowhere. It would be better to work with MM. We tried averaging and now we work with it, but I do not like it so much.
It's enough not to guess 100 times in a row...
What is the sense of working with such a leverage? Exactly now I'm at the test stage, I tried different things and finally got 146% certain that SL is a route to nowhere. It would be better to work with MM. I also tried averaging and now we are working with it. However, I do not like it so much.
The question is different - you don't need SL because you are working with small lots in relation to capital. But a small lot in relation to capital proportionally reduces profitability.
If a 100 point loss on a 4 digit is 1% of your capital, how much leverage are you working with?
You can average several times, but then why close these orders at a loss? Why do we have to average then? These orders should be managed, not closed.
It is absolutely incorrect to use the percentage ratio of losing and profitable trades as an indicator without taking into account the average volume of losing and profitable trades.
Since trailing profit (and sometimes loss LibreCoin(c)2016) is widely used, takeprofit (and sometimes stoploss) size can be rubber-stamped.
Therefore, being "in the plus" is in no way directly dependent on the percentage of profitable and losing trades.
To clarify, (I did not say that ratio of profitable trades to loss ones is any index) volume of transactions is regulated in such a way, that in any transaction amount of loss does not exceed a specified percentage of the deposit. For example: stop 10 pips in case of triggering you lose 1%, stop 30 pips again in case of triggering the loss size is not more than 1%. And as take profit is 3 times bigger than stop loss (stop - 10 pips profit - 30 pips. Stop - 30 pips profit - 90), even if you have more losing trades than profitable ones (for example 60% losing trades and 40% profitable ones) you will anyway be in the plus, as in one trade in case of stop loss you lose 1%, and in case of profit you gain 3%.
And when you don't have any loss limits, that maths doesn't work anymore.
It's enough not to guess 100 times in a row...
What are the odds of not guessing 100 times in a row? Even if you just flip a coin, the ratio of heads to tails is about the same.