stop loss statistics

[Trading Fox]

Sounds like you are doing fine. Setting stops is a real issue in developing a trading system. The problem with stops is that you do need to set them quite wide to give the trade room to move. If you have a close stop, you will have a small loss but you will have a lot of them!

If I can make some suggestions:
1) You should be able to back test various stop loss methods with your trading strategy to work out which one is the the best with your trading system. Try various methods and settings to get one that delivers the best profits.
2) I have found that you don't need stops in the market if you are trading intraday and you can watch the screen AND you have the discipline to take the loss when you have to.
3) You could try to use alerts instead of in the market stops.

Stops are really an attempt to manage risk, and the key aspect of risk management is to ensure that you trade of a size where you can still be around to trade if you have say 8 or 9 bad trades in a row. If your trade size is right and you can handle that then the approach you are taking seems fine to me.

Good luck.
Vossey

 

[DionysusToast]

Here's a shot of the Bund today (2 min chart). Fairly short term trading.

a) The first trade hit my target 1 but it was a limit order right at the top & I was zillionth in the queue and didn't get a fill. My ATS strategy in Ninja set my stop to break even as price hit first target. End result scratch trade.

Had no stop been in place - well - it would have been a disaster.

Thanks Mr Stop.

b) The second set of trades, hit first target before the market rolled over. Stop loss B was again break even on the last 2 remaining lots.

Had no stop been in place - well - it would have been a disaster.

Thanks Mr Stop.

c) The third trade - outright loser. Not a smart trade looking back, especially as I absented myself for a few minutes as the market was sluggish. Serves me right. Anyway....

Had no stop been in place - well - it would have been a disaster.

Thanks Mr Stop.