Tight Stoploss kills, Large Stoploss Mumakills

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Hi all,

I am trying to setup a scalping strategy,

However if I use tight stoploss, unexpected jumps catch it and close the position with - profit

if I use large stoploss and trend gets reversal it takes all of the money I earn so far.

what should I do?

thank you

 
MEHMET FATIH BARUT:

Hi all,

I am trying to setup a scalping strategy,

However if I use tight stoploss, unexpected jumps catch it and close the position with - profit

if I use large stoploss and trend gets reversal it takes all of the money I earn so far.

what should I do?

thank you

improve your system...

maybe take a look at how the trading signals are generated, which indicators are used....can they be improved or removed and replaced with better choices..

 
MEHMET FATIH BARUT:

Hi all,

I am trying to setup a scalping strategy,

However if I use tight stoploss, unexpected jumps catch it and close the position with - profit

if I use large stoploss and trend gets reversal it takes all of the money I earn so far.

what should I do?

thank you

You should find this fine line, between SL and TP, a good risk/reward ratio that will be profitable in the long term.

Backtesting can help you with that.

 
MEHMET FATIH BARUT:

Hi all,

I am trying to setup a scalping strategy,

However if I use tight stoploss, unexpected jumps catch it and close the position with - profit

if I use large stoploss and trend gets reversal it takes all of the money I earn so far.

what should I do?

thank you

Use important price levels.

Which if those broken invalidate your setup.

 
Bernhard Schweigert:

Use important price levels.

Which if those broken invalidate your setup.

Exactly. This also allows for a fixed risk lot calculation. If also the profit target is known, it allows to calculate the risk/reward ratio. This ratio can be used as filter.

 
Never risk more than a small percentage of your account, certainly less than 2% per trade, 6% total to the account. Risk depends on your initial stop loss, lot size, and the value of the pair. It does not depend on margin and leverage.
  1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.
  2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
  3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum 2017.10.10
              Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
              Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19
  4. You must normalize lots properly and check against min and max.
  5. You must also check FreeMargin to avoid stop out
 
thanks for all answers.
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