Trading with very tight stops and maximum lots gave mixed results, in a rather strong trend.
Thursday, April 9, 2009
Tight stops
Trading with very tight stops and maximum lots gave mixed results, in a rather strong trend.
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2 comments:
This is why I prefer to use H-lines or at least 6 pips stop. Some times using smaller stops save us some pips but in my case ( at least) I get more loosing trades. I think it depends on the entry strategy we use, is we enter on a breack of supp/resistance we should have a bigger stops because there are tons of false break. If we enter as soon a new swing low/high as formed we can have a smaller stop just above/below that swing.
What you think?
the width of the stop is an unsolved problem for me. Our kind of trades are based on the very short time momentum, so if entry is correct, price should move directly in our direction and produce gain. In that case a stop of even 3-4 pips could do the job. If entry is wrong, even a 10 p stop isn't enough. On the other hand, my average win is more than 4p, it was 6,4 on March. So i prefer to have more small losses than fewer bigger ones. Anyway I am the only one who publish losses too, i have more than 35% losing trades. I don't believe the guys who claim a 95% success whith such a tight stop...
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