What to do with unprofitable positions? - page 9
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The problem here is, It is impossible to determine exactly where the limit is, when you have to close the loss. After all, literally 1 point after closing the price can turn around and a losing trade could make a profit. This is the situation that always kills you and you get discouraged. Apparently we should use the statistics of average trend (no-loss) movement by a pair. And taking it into account the decision to close the loss. More precisely, to calculate the probability of price reversal after passing N points, taking into account statistics.
This is not a problem, of course one should not close at the slightest pullback, first of all this is not manly, this is not the way a man acts, but obviously one cannot lose more than one expected to gain profit, this is the limit, there is no sense to drain more, of course this is if no new information was received during holding the position and the forecast has not changed, otherwise closing or reversing occurs regardless of price movement and profitability of the position.
In fact, it is not professional to make decisions about opening/closing positions based on PnL or equity dynamics, this data is used to scale the risk, but not as signals. IMHO SL\TP - for cowards, their logic is totally wrong, the risk is modelled by lot, rather than a stupid stop-loss depending on your own loss, which does not affect the market at all, the market does not care what you lost or gained, it only matters if the forecast and the risk reasonably calculated in accordance.
This is not a problem, of course there is no need to close at the slightest pullback, first of all it is not manly, that is not the way a man acts, but obviously one cannot lose more than one expected to gain profit, this is the limit, there is no point in losing more, of course this is if no new information was received during the position holding and the forecast has not changed, otherwise closing or reversing occurs regardless of price movement and profitability of the position.
In fact, it is not professional to make decisions about opening/closing positions based on PnL or equity dynamics, this data is used to scale the risk, but not as signals. IMHO SL\TP is for cowards, their logic is totally wrong, the risk is modelled by lot, rather than a stupid stop-loss depending on your own loss, which does not affect the market in any way, the market does not care about your loss or gain, what matters is accurate prediction and reasonably calculated risk.
That's all for the fun of it. You can link your words to trading in the channel?
Here is the strategy:
* Step 1. Initially, pending orders, for example Buy Limit and Sell Limit, are placed at the same distance from the current price (example code of scripts:Pending orders UP,Pending orders DOWN- just as an example of placing pending orders).
* Step 2: When one of the pending orders triggers, the rest of them are deleted and step 1 is repeated.
After a while, positions with losses are accumulated, while we can also see profitable positions. Question: How do I minimise the number of losing positions?
1) You should select a currency pair with minimal price difference, practically any classic, except for the pound. 2) Open in any direction the first position with a min lot. Suppose we opened a Buy position, immediately record the opening price and set a horizontal line, then from it, as the first Buy position was opened, above the price start rotation of Sell Limit dist 5||10 Buy Stop and so on, where the total net distance "above", say 300 p, for the net "below" 300 p we start with a Sell Stop dist 5||10 Buy Limit. We get a total net max dist of 600 p (300/300) - a net can be formed in 4 types, where 1 and 2 are negative and 3 and 4 are positive. To work according to the scheme, you should specify: a) f-fi of numbering..., f-fi of restoring of lost positions, f-fi of deleting lots and placing new pending orders, if they go out of upper or lower range of dist .... . b) to attach any signal indicator, or something else ... And start to unload (collect profits only) and restore the lost positions, you can work yourself in the network body, usually opening a position in the cut when there is a reverse signal and at the time when the total number of open orders does not meet the signal. It is important to understand well what you have attached to this network, ie the signal, and which open orders need to close, and how many and under what conditions. For the summer period of three months playing online game I made about 87 000 p, without using indicators, the only thing I need for this trade is max min lots + calculate the risks based on the depo, where the norm for the classic stretch in the long term was 3000 p from the start + choice of a broker without commission.