Why?? why run without a stop loss

[Earl]

Why run without a stop loss??

Here goes..

you can only loose 50% of your account at any given time..

you have 1000 bal you go down to 500 with a clean slate you start again

margin calls when you drop down to 100%... which is normally 50% of your total balance...

The Ideal place to be is anything over 1000%

if you use a stop loss and it gets hit ie stop loss of 350

now your balance moves down to 650 ...and another bad trade hapenns you lose another 350 s/l now your down to 300...and so on

putting a stop loss in place will only bring your acount down to nothing..

with no stop loss if I had 2 bad trades going in the same direction I can only ever loose 50% of my account

2 bad trades with stop loss at 350....700 lost
2 bad trades no stop loss 500 lost


make sense???

[^eagle^]

Why run without a stop loss??

Here goes..

you can only loose 50% of your account at any given time..

you have 1000 bal you go down to 500 with a clean slate you start again

margin calls when you drop down to 100%... which is normally 50% of your total balance...

The Ideal place to be is anything over 1000%

if you use a stop loss and it gets hit ie stop loss of 350

now your balance moves down to 650 ...and another bad trade hapenns you lose another 350 s/l now your down to 300...and so on

putting a stop loss in place will only bring your acount down to nothing..

with no stop loss if I had 2 bad trades going in the same direction I can only ever loose 50% of my account

2 bad trades with stop loss at 350....700 lost
2 bad trades no stop loss 500 lost


make sense???
You are confusing pips and dollars!

If I get a margin call I lose HALF my ACCOUNT BALANCE! (Dollars)
If I get a 350 pip Stop loss I lose 350 PIPS!
On my account that is 35 dollars. I hit 15 stops and I only lost 25% of my BALANCE!

That is why I use a stop loss.:)

[Earl]

yes I did confuse pips and dollars...but you get it...

why put a stop loss on a trade that could possible come good????

no mater what you can only lose 50% of your account

1000 dollars at .01 lot size
s/l set at 350 pip = $35

you hit 1 bad trade and your s/l kicks in saying it's your first trade..

you have just lost 35 bucks off your balance

now you have a $965 and you which in return has lowered your margin %

trade plays out
no s/l
yes it went down 350+
but you still get your 2 bucks at the end...
the bonus is your margin % rises because of the higher balance


everytime your s/l kicks in..it chips away at your magin% little by little..making it smaller and smaller

if you are going to multi trade... and it buys 5 orders the same way with in pips of each other and they all hit the s/l...

you just lost 175 bucks off your balance...

and lowered your magin % horribly

this is not forex trading this is faps trading... the sooner you get that into your head the sooner you'll make some real money

[^eagle^]

yes I did confuse pips and dollars...but you get it...

why put a stop loss on a trade that could possible come good????

no mater what you can only lose 50% of your account

1000 dollars at .01 lot size
s/l set at 350 pip = $35

you hit 1 bad trade and your s/l kicks in saying it's your first trade..

you have just lost 35 bucks off your balance

now you have a $965 and you which in return has lowered your margin %

trade plays out
no s/l
yes it went down 350+
but you still get your 2 bucks at the end...
the bonus is your margin % rises because of the higher balance


everytime your s/l kicks in..it chips away at your magin% little by little..making it smaller and smaller

if you are going to multi trade... and it buys 5 orders the same way with in pips of each other and they all hit the s/l...

you just lost 175 bucks off your balance...

and lowered your magin % horribly

this is not forex trading this is faps trading... the sooner you get that into your head the sooner you'll make some real money

But at the same time I am hedged by my OTHER trades. As my stops are pooped that allows new opportunities on a new playing field to increase your margin.

The lowest margin I have run is 400% And that was in the beginning when I only had 400 usd.

My margin will increase as I get more trades.

Remember even though I pop stops I am still having wins at the same time Increasing my margin.

All I need is the proper balance of buys and sells to stop a margin percentage drop.

You can accomplish that by changing your trade direction or killing bad trades. I prefer navigating my trades. one time I had somethign like 16 open trades but a margin percentage of infinity! Because I was perfectly hedged!

If 8 trades are going bad I got eight equal trades going good.

Dude I have been studying FAP and trading non stop for over four months. I also am an amateur mathematician. (third year calculus drop out)

the numbers don't lie!



This is what multiple trading is about.:)

[Earl]

dropout huh....then you would know genius..that you kill the win % of faps when you place a stop loss...LOL

there is no balance it's random....if it wasn't then someone would have made the perfect equaction to calculate it...like on numbers(tv show)

[^eagle^]

dropout huh....then you would know genius..that you kill the win % of faps when you place a stop loss...LOL

there is no balance it's random....if it wasn't then someone would have made the perfect equaction to calculate it...like on numbers(tv show)

Actually putting the stop loss on it does not drop the win percentage significantly. Have thought about WHY the win rate of this EA is 95%? Because it only closes at the end of the month.

The way we use this EA we trade I would dare say at least 20 times as much as one would with one trade. My stop loss acts much like an "end of month closeout."

So lets say we run FAP one trade at a time.
It does 20 trades in one month. The last one is a loser.

Thats a 95% win rate

Now in that same month we use the supercharger
it performs 500 trades
5% losers allows me 25 losing trades (none of which are will be over 350 pips)
I've hit 16 stops in 4 weeks
Making my win percentage around 97%!

[Earl]

Actually putting the stop loss on it does not drop the win percentage significantly. Have thought about WHY the win rate of this EA is 95%? Because it only closes at the end of the month.

The way we use this EA we trade I would dare say at least 20 times as much as one would with one trade. My stop loss acts much like an "end of month closeout."

So lets say we run FAP one trade at a time.
It does 20 trades in one month. The last one is a loser.

Thats a 95% win rate

Now in that same month we use the supercharger
it performs 500 trades
5% losers allows me 25 losing trades (none of which are will be over 350 pips)
I've hit 16 stops in 4 weeks
Making my win percentage around 97%!LOLOLOL I like your numbers but it is not so.... you have 95% win rate with no stop loss...you have 75% win rate with a stop loss....

what you have is 25% of trades losing that are going to kill your account...LOL

run a back test

[^eagle^]

LOLOLOL I like your numbers but it is not so.... you have 95% win rate with no stop loss...you have 75% win rate with a stop loss....

what you have is 25% of trades losing that are going to kill your account...LOL

run a back test

Your back test assumes a set it and forget it mentality.

I change my trade direction according to market conditions and margin percentages. I am the pilot. If you know anythign about planes the auto pilot is a tool used by pilots to take breaks. It is no substitue for take offs and landings and maneuvers. That's the pilot's job.

If you want you want a set it and forget system then use FAP right out of the box with defaults only.

You'll get rich......
Someday:rolleyes:


I would like to remind people that FAPSC is not a set it and forget it sysytem. it's a full fledged trading system That needs monitoring. preferably several times a day.

[Earl]

eagle I like you!!!!....

and what ever works man....

I think it all comes down to trading style...

I like to blaze baby blaze!!!!!!!!!!!!!!

hey I'm Maverick and you're Iceman....

I love top gun!

[^eagle^]

eagle I like you!!!!....

and what ever works man....

I think it all comes down to trading style...

I like to blaze baby blaze!!!!!!!!!!!!!!

hey I'm Maverick and you're Iceman....

I love top gun!

cheers bro! Happy trading!

[alan]

yes I did confuse pips and dollars...but you get it...

why put a stop loss on a trade that could possible come good????



That is a classical psychological mistake beginner traders make. I won't say more of it, but suffice it to say you'll learn this lesson either the hard or the easy way - probably the hard way as most traders do.

[Earl]

That is a classical psychological mistake beginner traders make. I won't say more of it, but suffice it to say you'll learn this lesson either the hard or the easy way - probably the hard way as most traders do.
it was only a slight mistake the principal is still there...stop loss unless really wide kills your margin%

there is already a stop loss it's a margin call

simple...

If I where going to learn the hard way I would have learned the hard way already...lol

I learned you can't lose your money...so there are no worries

and the faster you make that money ie More Trades the better
if you are not making multiple trades you are wasting your time

it's fool proof

[n1ghtnday]

it was only a slight mistake the principal is still there...stop loss unless really wide kills your margin%

there is already a stop loss it's a margin call

simple...

If I where going to learn the hard way I would have learned the hard way already...lol

I learned you can't lose your money...so there are no worries

and the faster you make that money ie More Trades the better
if you are not making multiple trades you are wasting your time

it's fool proof

Hi Earl,

I don't necessarily agree with the multiple trades method b/c I have done extensive backtesting as well and I find a better profit (for me) with single orders .1 per $1000 in account. I also found that a stoploss if 400 is ultimate.

Again, these are the settings that work best for me. I will definitely keep you guys posted with anything else that arises on my end.

Don't get me wrong, I love your input Earl ;)

[Earl]

1 trade 1 way..1 hope 1 prayer...

1 trade at 1000 at .1 is a dollar a pip...with one chance at winning

10 trades at 1000 at .01 is 10cents a pip which works out to 1 dollar a pip...with many chances to win.

1 trade can get held up for days...not likely with 10 trades.

but to each his own...

[n1ghtnday]

1 trade 1 way..1 hope 1 prayer...

1 trade at 1000 at .1 is a dollar a pip...with one chance at winning

10 trades at 1000 at .01 is 10cents a pip which works out to 1 dollar a pip...with many chances to win.

1 trade can get held up for days...not likely with 10 trades.

but to each his own...

Hi Earl,

I see what you are saying, but my backtesting isn't giving me positive results. Maybe I need to use another broker's historical data.

[alan]

it was only a slight mistake the principal is still there...stop loss unless really wide kills your margin%

there is already a stop loss it's a margin call

simple...

If I where going to learn the hard way I would have learned the hard way already...lol

I learned you can't lose your money...so there are no worries

and the faster you make that money ie More Trades the better
if you are not making multiple trades you are wasting your time

it's fool proof

margin call a stop loss??? do you realize what you're saying...

[Earl]

Yes LOL it will stop...LOL you won't be at zero

:p