What's the hardest thing to do?

[VielGeld]

I've used 4.5 pip stops in my last couple trades as an experiment.

Some might say that's way too tight, but I didn't have much of a problem there. If your entry and execution is good, I think it could also easily be a 2 pip stop.

 

[Masquerade]

I've used 4.5 pip stops in my last couple trades as an experiment.

Some might say that's way too tight, but I didn't have much of a problem there. If your entry and execution is good, I think it could also easily be a 2 pip stop.

what instrument? What spread?

 

[VielGeld]

Forex on Oanda. Their spread is about 1.2.

Instrument and spread don't matter either, imo. The importance is recognizing a high-prob setup and the points at which it can turn (i.e. where you should hold to and where you should get out). From this you can easily determine a good entry if it reaches your price.

Thus: possibility of very tight stops right there.

 

[G.O.A.T]

Tight stops rock....as a great man once said....ENDEX

 

[Masquerade]

Instrument and spread don't matter either, imo. The importance is recognizing a high-prob setup and the points at which it can turn (i.e. where you should hold to and where you should get out). From this you can easily determine a good entry if it reaches your price.

Thus: possibility of very tight stops right there.

It bloody well does when you stick a stop of 4.5pts and the spread's 3! How do you decide on position sizing?

 

[brewski1984]

I didn't mean to start a fight lol

 

[VielGeld]

It bloody well does when you stick a stop of 4.5pts and the spread's 3! How do you decide on position sizing?

Ah, I see what you mean. I haven't tried it for anything other than a 1.2 spread since my experience has been with Eur/Usd. Eh, I guess you either account for the spread or simply not trade the pair, then? *shrug*

Average position size is about 60% of account value (50:1 leverage). For great opportunities, 75% is my max. If I'm not so confident, then I might put on 10% to test the waters, then put on the rest if it looks good or bail at a minimal loss if not. I'd go all-in everytime if I could, but the uncertain nature of trading makes that impossible.

 

[Masquerade]

Average position size is about 60% of account value (50:1 leverage). For great opportunities, 75% is my max. If I'm not so confident, then I might put on 10% to test the waters, then put on the rest if it looks good or bail at a minimal loss if not. I'd go all-in everytime if I could, but the uncertain nature of trading makes that impossible.

Before I jump to conclusions: Are you saying you trade with a 4.5pt stop and use 60% of your account?

*sigh* I remember the days on oanda when eur/usd spread was 0.9 and even sometimes 0.6.

 

[VielGeld]

Yup!

 

[G.O.A.T]

average position size is about 60% of account value (50:1 leverage). For great opportunities, 75% is my max. If i'm not so confident, then i might put on 10% to test the waters, then put on the rest if it looks good or bail at a minimal loss if not. I'd go all-in everytime if i could, but the uncertain nature of trading makes that impossible.

impossilble

 

[the hare]

quality lulz

 

[Masquerade]

Yup!

You're just taking the **** and trying to get me worked up aren't you?

 

[G.O.A.T]

:clap:

quality lulz

 

[VielGeld]

Uh-oh. Did I say something wrong?

 

[G.O.A.T]

Uh-oh. Did I say something wrong?

50-1 high rollaz only round these ere parts bro

 

[VielGeld]

Damn, you're right. I should switch to brokers with 500:1. Oanda's max of 50:1 is so small time.

 

[Masquerade]

So if you lose 9 points you blow an account? If market gaps 20 points you get a margin call? I'm trying to get my head around this.

 

[brewski1984]

VielGeld, you can't be serious?

 

[Masquerade]

He must be joking, I think i'm going to take a break - this place drives my blood pressure up.

 

[VielGeld]

So if you lose 9 points you blow an account? If market gaps 20 points you get a margin call? I'm trying to get my head around this.

Oh! Lol, ok, I should explain more.

Oanda allows you to break down lots into as little as 1 "point". I believe a regular lot is about $10/pip/lot, right? Then this is about 100,000 "Oanda points".

So let's say you have a $1000 account, and want to bet 60% on a trade with 4.5 stop. On Eur/Usd this is about... 23,000 points as I look at it, or ~$612 in margin (i.e. "60%"). This comes out to $2.3/pip.

So if you have a 4.5 pip loss, this is 4.5 x 2.3 = $10.35... Hardly anything to be worried about.

If average winner is 20 pips, then you bring home $46. Even assuming a 30% win rate or something, you're still profitable. That's why I said all you need is a set of high-prob setups. Run those for what they're worth, and you're fine.

Of course, this works for me since it's my style. I like making my trades as black & white as I can and a tight stop implies an "either it worked or it didn't" philosophy. I'm not about to agonize over whether my 50 pip stop at 10% account value is going to be hit or not. So if my trade isn't immediately giving me positive feedback to my expectations, it's not a trade I'm likely to want.