setting your stoploss

trading strategies and money management discussion, code, results

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Firefly
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Postby Firefly » Fri Oct 01, 2010 11:42 pm

lmao, fu-king hell things definately went off topic here.

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pika
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Postby pika » Sat Oct 02, 2010 1:47 am

I hope we will keep this forum useful with professional postings instead of uncouth statements. Although I may not fully follow the highly technical debate, I think those who are taking time to participate in the topic are making an effort to contribute to the benefit of others. If we find a topic irrelevant to our needs, just move on. Time is precious.

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bredin
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Postby bredin » Sat Oct 02, 2010 1:55 am

It just goes to show that logic is a wonderful thing, but its no substitute for actual thought.

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xtremeforex
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Postby xtremeforex » Wed Nov 17, 2010 2:53 pm

Michel,

You're EXACTLY right. If we assume for a moment that our stop-loss was infinite (i.e. infinite margin), then it is only a matter of time for a trade to swing back into profit before you close it, even if you were to scalp it a pip at a time, therby increasing the number of winning trades close to 100%, if not 100% itself!

Of course, infinite stop-loss requires infinite margin too. But I think with adequate capitalization and small trade sizes for that capitalization could simulate this infinite stop-loss/margin requirement, simply on the basis that the value/pip is so small that it would take a massive multi-thousand pip drop before it is hit, a probability so low that the world itself would come crashing down too, which in that case losing your $2,000 balance is the last of your worries.

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TheRumpledOne
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Postby TheRumpledOne » Thu Nov 18, 2010 3:07 pm

In the meantime, swap rates slowly drain your account...
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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