No SL trading strategys / trade management - page 4

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Not setting a SL may lead to higher profits and reduced drawdowns within a specific time period, which is a viable strategy. The biggest issue, however, is that this time period is uncontrollable, which requires a certain degree of risk-taking. Diversifying funds can partially address this issue.
 
Fernando Carreiro #:

You will never find anything safer and simpler than a stop-loss. If you study the maths for the other methods like grids, martingales, recovery zones and whatnot; they are ALL convoluted forms of simply using a stop-loss, but with added complexity that hides risk, draw-down and adds to the trade costs.

The sooner you accept and understand this, the quicker you will be on your way to better and easier trading. Don't complicate something which is already so simple.

And yes, I know what I am talking about because I committed the same mistake. I too also followed the same foolish ideias of grids, martingales, etc. and it all failed. It took me a long time to accept and understand, and only when I finally started analysing the maths did it finally sink in what an idiot I had been, when the best and simplest way was already staring me in the face — the humble stop-loss.

Strategic stop loss is more flexible than a fixed stop loss. If it's a long-term strategy, a fixed stop loss is not necessary. Frequent stop losses are the main reason for rapid losses among beginners.

Of course, whether or not a stop loss is set, strategies like averaging down and martingale are high-risk EAs.

 
When reading the posts of "No SL defenders", I cannot understand the underlying thought process.

It is simple, if you want to apply a NoSL strategy, if that can be called a strategy in the first place is questionable, you also need an account from a broker without negative balance protection.

Else, your account balance is your SL. Very simple.

Any other argument is simply nonsense.
 

I've tried no sl strategies in backtest engine. Could not find a reasonable solution to spend more time on it. As previous comments say, it is mathematically not working.

However if you have a strategy for long positions and another strategy for short positions, and want to put them on a single EA which is reasonable, it would be hedging and they could work.

For sl, personally I was never satisfied with fixed sl. So I use SL function. I code the rules for closing the position, when it happens, it just closes. It is all about advantages, however a big disadvantage too: if the VPS shut down by any reason before when the sl function should be triggered, you may lose more than expected.

 
NO SL means your gambling risking all your AccountBalance / Equity, its like a ticking bomb thats waiting till time runs out. I saw one video with this strategy and he trades on one minute timeframe, basically he is firing all those trades and at some point he went hedging because of the large draw down and got wiped out in the end. Better use SL, close those bad trades early then re plan. 
 
tho93 #:

I would disagree, i still appreciate the advice, but not what i was asking for.

In the end it depends on your trading approach, hedging a loss and fixating the equity does make sense, becouse now you can look/wait for better prices and manage the loss without having to add more trades while the equity is fixed.

Again, it depends on your strategy, ofcurse it should be more Detailed then what i just mentioned but it does is smarter then just taking a loss (depending on strategy and risk tolerance), its not something that can just be regarded as worse.
It does indeed make sense depending on how you use it, it gives you the ability to be more Dynamic, which you dont have just with one SL.

I agree that just a SL might be the simplest way, but i disagree calling the other Methodes foolish ideas, worse or a waist of time.

I was asking for ideas for smarter alternatives by the way, also the goal doesnt necessary is to be longterm profitable with it, i mentioned what the goal is.

Absolutely agree with you
 
HosseinKOGO #:

I've tried no sl strategies in backtest engine. Could not find a reasonable solution to spend more time on it. As previous comments say, it is mathematically not working.

However if you have a strategy for long positions and another strategy for short positions, and want to put them on a single EA which is reasonable, it would be hedging and they could work.

For sl, personally I was never satisfied with fixed sl. So I use SL function. I code the rules for closing the position, when it happens, it just closes. It is all about advantages, however a big disadvantage too: if the VPS shut down by any reason before when the sl function should be triggered, you may lose more than expected.

That is not a stoploss, it is a condition for close. You can still add a stoploss in your code, a little further away from your “coded stop “ , just to have a safeguard in case your VPS fails 
 
Sophia Johnson #:

Strategic stop loss is more flexible than a fixed stop loss. If it's a long-term strategy, a fixed stop loss is not necessary. Frequent stop losses are the main reason for rapid losses among beginners.

Of course, whether or not a stop loss is set, strategies like averaging down and martingale are high-risk EAs.

What is that “ strategic stoploss” ?  Would you say that an ATR based SL is “ strategic” or fixed?!  Because is at one ATR away for example, which is a fixed value … but the point difference is dynamic . 
 
I am thinking at a stoploss more as a fail safe, and LotSize is calculated based on that … I normally will exit the trade before that. I am entering a long trade if I am confident that next candle is bullish. But if the next candle is going opposite, why would I stay in that trade ?? Take the small loss, and move on . 
Or..at least this is what I should do.// 😁
 

Every strategy should have a condition to exit a trade at loss. If that is not set, your stop loss will be your account balance. Simple as that.

That being said, a fixed stop loss is not mandatory. There are strategies that do not use a stop loss level, only a stop loss a condition - it's the same thing when opening a new trade. You can open a new trade based on a condition (indicator crossing a certain level for example) or you can open a new trade using a stop/limit order. It's the sane thing.

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