I Stopped Using Stops

[Wicked_Daddy]

There are a few doing similar things, but the majority are not and I very much doubt they can get their heads around it !

As for advice....I would keep on doing what you do. The only thing you may want to explore to enhance the strat, in times of drawdown, would be some form of hedging to negate any potential fat tail acct busting moves.

Good luck.

I would love to hedge. I do it in an offshore demo account and it's great. But I'm in the U.S. No hedging here - at least not for retail traders.

Suggestions?

 

[tar]

I would love to hedge. I do it in an offshore demo account and it's great. But I'm in the U.S. No hedging here - at least not for retail traders.

Suggestions?

Hedge in another sub account or just close the trade

 

[counter_violent]

I would love to hedge. I do it in an offshore demo account and it's great. But I'm in the U.S. No hedging here - at least not for retail traders.

Suggestions?

Split funds between different brokers perhaps. Futures and spot cash. Related instruments (not very easy in forex)

I trade mainly indices so have lots of options available ie Dow / S+P

 

[gerryg]

I think its possible to trade without Stops but not on forex.. with such volatility.. unless you don't have 20-30K deposit and trade 0.05 lot I wouldn't recommend to go without controlling your risk at all. At least put SL's on weekly high/lows to secure your position from sever losses (of course if your deposit allows it )

 

[Wicked_Daddy]

Split funds between different brokers perhaps. Futures and spot cash. Related instruments (not very easy in forex)

I trade mainly indices so have lots of options available ie Dow / S+P

I looked into it with my broker and I can actually open another account. That's the only way to get around the U.S. rule. Looks like I'll need another screen!

On another note: I've looked at brokerages in Australia. Anyone know a good one that takes U.S. clients? (maybe another thread)

 

[counter_violent]

I looked into it with my broker and I can actually open another account. That's the only way to get around the U.S. rule. Looks like I'll need another screen!

On another note: I've looked at brokerages in Australia. Anyone know a good one that takes U.S. clients? (maybe another thread)

Perhaps send Oscar Reed a PM, he may be able to help.
http://www.trade2win.com/boards/members/551680-oscar-reed.html

 

[Oscar Reed]

I looked into it with my broker and I can actually open another account. That's the only way to get around the U.S. rule. Looks like I'll need another screen!

On another note: I've looked at brokerages in Australia. Anyone know a good one that takes U.S. clients? (maybe another thread)

You going to need an Aussie address.

We have the big UK market makers IG and CMC and few smaller ones

Direct market we have FP Markets(cheapest) won't take US clients.

There is the big banks with trading platforms, but there turnaround costs are too high for every day traders.

I would look into Hong Kong, Singapore and Japan.
Lot more choice of brokers and you might find one that takes US clients.

 

[awesomefx]

I think that because the market moves in waves and cycles much more like we see waves on an oscilloscope. So I think that why it can work. But your overall account balance is your stop loss and with no stops you're one trade from blowing out your account.

 

[arigoldman]

I wouldn't recommend this strategy...

 

[lynx]

I looked into it with my broker and I can actually open another account. That's the only way to get around the U.S. rule. Looks like I'll need another screen!

On another note: I've looked at brokerages in Australia. Anyone know a good one that takes U.S. clients? (maybe another thread)

My brother and I use our accounts to hedge each other. He has a totally different address, and we both trade the same currency at an agreed price. When necessary, I use his account to hedge mine and he uses mine to hedge his. The brokers don't have a clue whats going on.

We won most of the time, but lately the brokers use spikes to take out our positions when we were not in a hedge.

 

[Wicked_Daddy]

My brother and I use our accounts to hedge each other. He has a totally different address, and we both trade the same currency at an agreed price. When necessary, I use his account to hedge mine and he uses mine to hedge his. The brokers don't have a clue whats going on.

We won most of the time, but lately the brokers use spikes to take out our positions when we were not in a hedge.

My broker will allow me to open a second account as long as I fund it separately. They actually acknowledge that it is for the purpose of hedging when, in the U.S., that is not allowed in a single account. So, problem solved.

Broker induced spikes (sudden, unusually wide spreads) don't matter if the stop is set far enough out or there is no stop. That was my first motivation for not using stops at all and it solved that issue. Then, I began to get comfortable with the concept as trade performance improved. It is way outside conventional thinking and just about everything you read about trading. But then, if conventional thinking worked so well, so many would not be losing money by employing conventional thinking.

 

[tar]

Another losing system who is willing to give everything back in one trade .

Open pnl -250k and counting , why ? Just to make a few hundreds or a couple of thousands ! Will get back to that one later ...

 

[tar]

Another system just keep averaging down what could go wrong ?

 

[simbob]

Another losing system who is willing to give everything back in one trade .

Open pnl -250k and counting , why ? Just to make a few hundreds or a couple of thousands ! Will get back to that one later ...

And what is this? Looks too good to be truth

 

[gerryg]

My broker will allow me to open a second account as long as I fund it separately. They actually acknowledge that it is for the purpose of hedging when, in the U.S., that is not allowed in a single account. So, problem solved.

Broker induced spikes (sudden, unusually wide spreads) don't matter if the stop is set far enough out or there is no stop. That was my first motivation for not using stops at all and it solved that issue. Then, I began to get comfortable with the concept as trade performance improved. It is way outside conventional thinking and just about everything you read about trading. But then, if conventional thinking worked so well, so many would not be losing money by employing conventional thinking.

So you opted for hedging instead of using stop losses? Isn't it called position "lock" or you use other instruments for hedging?

 

[Wicked_Daddy]

So you opted for hedging instead of using stop losses? Isn't it called position "lock" or you use other instruments for hedging?

I haven't set up the other account and I'm beginning to think I probably won't. I'm happy with my strategy the way it is. It works very well for me and changing it doesn't seem necessary. I have not been wiped out yet, as is the belief. And we had some pretty big swings lately that represent the types of events that should have crashed my account. Incidentally, I was on the correct side of those events. Clearly, I don't just blindly enter trades without a stop and hope for some cyclic behavior that will give me a profit at some point.

For 2016, I plan to convert my charting to 4 hour and increase my pips per trade. I currently enter/exit on 15m charts with 4 hour for trend establishment. I'm under utilizing my system. That's the only change for now.

Que sera sera...

 

[darktone]

I haven't set up the other account and I'm beginning to think I probably won't. I'm happy with my strategy the way it is. It works very well for me and changing it doesn't seem necessary. I have not been wiped out yet, as is the belief. And we had some pretty big swings lately that represent the types of events that should have crashed my account. Incidentally, I was on the correct side of those events. Clearly, I don't just blindly enter trades without a stop and hope for some cyclic behavior that will give me a profit at some point.

For 2016, I plan to convert my charting to 4 hour and increase my pips per trade. I currently enter/exit on 15m charts with 4 hour for trend establishment. I'm under utilizing my system. That's the only change for now.

Que sera sera...

You dont need to hedge anyways mate. Just respect size and value and I reckon youl be fine

 

[Wicked_Daddy]

You dont need to hedge anyways mate. Just respect size and value and I reckon youl be fine

Thanks! I really like EurGbp right now. I get 1.5 times the profit compared to USD based pairs but the margin is the same. What a bargain!

 

[hhiusa]

An Aussie address is not a problem for foreign residents. You can form a pty ltd. Even though it must have at least one director residing in Australia, that can be remedied with a nominee director and or registered agent. I have done this for foreign markets. It works the same way in the states. I do not live in Wyoming, but have a corporation there, whereby I pay an attorney $1195/year to be my nominee director and he provides the secretary of state there his business address to provide residency and forwards all pertinent correspondences to me. Additionally, even though they require you to have a secretary, you can hold multiple positions and be your own secretary or pay a company to provide this service cost effectively.

There are several companies all over the world which specialize in these kinds of services.

 

[tar]

Thanks! I really like EurGbp right now. I get 1.5 times the profit compared to USD based pairs but the margin is the same. What a bargain!

But the daily range is tighter ...