SL to be or not to be - page 4

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Vitaliy Medvedev:

The question is wrong. Where and how to place a stop loss is absolutely not important!!! The market expectation is more important, i.e. if the profit is twice as big as the stop loss, the deposit will withstand

(This is an example. The actual difference should be larger). So stop loss depends directly on the method of entering the market. If the pattern you enter the market is unreliable and

If the pattern you entered the market is unreliable and brings more losses than profits(according to your planned risk percentage), you need to change the method.

I understand. That's not the answer... But this: --"But nowhere have I seen a coherent mathematical explanation on the fingers..." ...it got to me. Open any crummy textbook on stock trading. In the first few pages,

there's usually a mathematical explanation, and it's on your fingers, of how to calculate the math!


The books are so written that mere mortals cannot understand.
Like 100 pips will make you lose so much money, if it is too much, you have to decrease the lot or make fewer pips.
I think the correct approach is when you know that the signal for the selected system takes some time to work out. Then you determine the place in this time where there will be a clear signal that you have made a mistake. This is where you should set the stop loss.
And how many points it will be in percentage points, or lots, or whatever. This mathematics should be based on previous events.
In other words, every system has its own targets in pips.
 
Anatolii Zainchkovskii:
In books it is written in such a way that mere mortals cannot understand.
You know, 100 pips will make you lose so much, and if it is too much, you should either decrease the lot or make less pips.
I think the right approach is when you know that it takes some time for the signal to work with the chosen system. Then you determine the place in this time where there will be a clear signal that you have made a mistake. This is where you should set the stop loss.
And how many points it will be in percentage points, or lots, or whatever. This mathematics should be based on previous events.
That is, every system has its own pips target.

Everything is correct, but the loss should not exceed a certain percentage of the risk . Otherwise the deposit will tend to zero and very quickly...

Have you all read about the percentage of risk? That is the mathematical explanation for the stop loss!

 
Vitaliy Medvedev:

All right, but the loss should not exceed a certain percentage of the risk. Otherwise the deposit will tend to zero and very quickly...

Have you all read about the percentage of risk? This is the mathematical explanation of the stop loss!

Wait a minute, if I know that according to the theoremer the series of losses in my trading system may result in 30 consecutive losses, then I have to calculate how to open a position after 30 losses. That's if it's aggressive.
And conservatively, my 30 losses should not exceed 5% of losses.
 
Anatolii Zainchkovskii:
And how can you tell? What and where should happen for it to be a signal that yes, the trend is over.

Oh...! That's an eye-opening question! The answer is, "I don't know!" Everyone decides - it's up to themselves. There are, of course, classic options. You know, divergence, false breakdown or trendline touching on the other side.

the other side, head/shoulders, double top, you can't go on and on. But it's all like that... It works, it doesn't.

In order to determine the exact end of the trend you have to live in the future.

The advice, of course, is this. There's no need to catch knives. Take profits when YOUR system says so. Everything else is blah, blah, blah.

 
Anatolii Zainchkovskii:
Wait a minute, if I know that according to the theorem my trading system may take 30 losses in a row, then I have to calculate how after 30 losses I can open a position. That's if it's aggressive.
And conservatively, my 30 losses should be no more than 5%.

Yes! And preferably less than 5%. If you want to have investors. "Have" in a good way.

 
Anatolii Zainchkovskii:
Greetings all. It's no secret that many traders are not particularly keen on applying stop losses.
For a long time I have not been able to understand how and where to place the stoploss. Somewhere it is written to apply it in relation to depo drawdown, somewhere it is written to put it under/over the minimum/maximum.
But nowhere have I seen a clear mathematical explanation on the fingers.
I myself did not want to accept stoplosses, because I thought I was the smartest and always right. But you know what the market does with them.
So now I trade with stoplosses without interference. I am a little bit aware that I may not always be right.
I've created this topic hoping to get some knowledge about SL setting distances (Stop Loss), and it's interesting who and how is dealing with it.

SL is:

- loss taking,

- it is a gift to the market,

- it is a trade at the worst price,

- it's a missed profit,

- it's when you don't know where to go next,

- it's a pass!!!

 
Sergey Chalyshev:

SL is:

- is the deal at the worst possible price

Right

 

no one is forced to carry a real stop loss. Because when it's close, it's evil

the real one, which the robot sends to the server, is a level of disaster when there is no connection but the market is awake

If the price has entered it, it means that the market entry was wrong and measures have to be taken.
And what action should be taken, it depends on taste and colour
Here you can take a close take or just close it. Who likes and knows how to order lots, you can lock and navigate. Or just close it :-).
But we have to act

 
Maxim Kuznetsov:
But we have to act

Yes, as an option to close on a pullback

 
I have been working on this for a long time and I'm not sure what to do with it.
As for locks, on netting mt5 it is loss taking. To handle locks is either mastery of the market or a silly excuse for self-abasement.
Regarding the fact that a SL is a deal at a worse price, it is relevant only in the case of levels similar to the last high or last low. But in the case of some systems this is just a protection against more serious fixation of losses.
As for the virtual one, it is appropriate only for the fraudulent ones, because there is no need for a broker to draw your own hairpin.
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