Stops are the way to go. - page 7
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You can do it without stops if you have all 100% profitable entries, or let's say a coup d'état with constant lol.
But practice shows that this is impossible without deep drawdowns.
And drawdown is a little bit under-excited "Unclecle" ))))).
Stops may not lead anyone to success, but they will save a lot of trouble.
I was deleting screenshots from my computer today and came across this one. From the picture you can see how the deposit can grow if the stops work.
The balance stands still and funds grow. This is from a couple of hours of forex trading. This is not a tester.
Optimising stop orders has been on my mind for years. I think I am not the only one.
I would like to hear the opinion of experienced traders and programmers in this field, for you-know-what).
I use "mathematical" SL and TP in my TS. It means I calculate the average statistical deviation of the price taking into account instrument volatility from those anchor points on the chart which serve as points for entering. Supposedly, these deviations must be taken. If everything is calculated correctly, stops either do not trigger, or they trigger where there is no sense in holding the position and hoping for a reversal.
I use "mathematical" SL and TP in my TS. It means I calculate the average statistical deviation of the price taking into account instrument volatility from those anchor points on the chart which are used for entries. Supposedly, these deviations must be taken. If all the calculations are correct, the stops do not trigger, or they trigger at the points where there is no sense in holding the position and hoping for a reversal.
It is difficult to understand your words.
Are you entering using limit orders or from the market?
Do you have lots of probable entries or what should I understand?
I would be grateful for an outline.
Do you have the tables behind the probable inputs? Or how should you understand them?
I'd appreciate a sketch.
According to forum rules in the screenshot information about the broker, advisor name and other data have been anonymised
I give you an example with the pound. Deals in green are the first day when the signal was received, and the red one is the second day. Both on the first and second day, the algorithm opened positions at the market at 17:00 with fixed SL 800 and TP 1100.
As you can see, in both cases, the protective orders were located near the low candlestick on D1, or someone else calls these "zones" "levels". I have a simpler approach to it, because I realized there are no levels in Forex... there are no common quotes and everything is very vague. There are zones. So, I calculated how many pips the price passes on the average for the day, and how much an approximate stop should be, when the price obviously gets to the zone where it makes no sense to hold the position. Generally speaking, for GBPUSD pair I got optimal values of SL 800 pips, and maximal deviation of the price, that needs to be fixed by TP 1100 pips. Since 01.01.2013 the market follows these "patterns"... here are some "simple truths" about Stop Losses and Forex. Hopefully answered your question colleague =)
"I calculate the average deviation of the price taking into account the volatility of the instrument from those anchor points on the chart"
"And on the first and second day, the algorithm opened positions on the market at 5pm with fixed SL 800 and TP 1100."
Very reminiscent of the classic anecdote:
"You either take off your cross or put on your pants."
Your clever, clever phrase translates into quite trivial "round" stops.:-)))))))))))))))))))
According to the forum rules in the screenshot the information about the broker, the name of the EA and other data has been anonymised.
Here is an example with the pound. Deals in green are the first day when the signal was received, and the red one is the second day. Both on the first and second day, the algorithm opened positions at the market at 17:00 with fixed SL 800 and TP 1100.
As you can see, in both cases, the protective orders were located near the low candlestick on D1, or someone else calls these "zones" "levels". I have a simpler approach to it, because I realized there are no levels in Forex... there are no common quotes and everything is very vague. There are zones. So, I calculated how many pips the price passes on the average for the day, and how much an approximate stop should be, when the price obviously gets to the zone where it makes no sense to hold the position. Generally speaking, for GBPUSD pair I got optimal values of SL 800 pips, and maximal deviation of the price, that needs to be fixed by TP 1100 pips. Since 01.01.2013 the market follows these "patterns"... here are some "simple truths" about Stop Losses and Forex. I hope I have answered your question colleague =)
Got it now. Thank you colleague. Of course, it does not suit me, but it may be the same for my outlook.
My automatic system pulls stops to boo at the first opportunity, of course it is not critical for me to put them far away, but the problem is that it may trigger there and that is not good. I have a short term TS in development, that's why this topic has been touched upon.
You have a clever, clever phrase that translates into quite trivial "round" stops.:-)))))))))))))))))))
I don't know how to put it in simpler terms :-))) Stops and tokens are round. But they need to be calculated first... 800 and 1100 work only on GBPUSD.... On the rest you have to sit down and analyse the chart...
I get it now. Thank you, my colleague. Of course, it does not suit me, but it may be the same for my outlook.
I have an automatic trader that pulls stops to boo at the first opportunity. Of course, it is not critical for me to put them far away, but the issue is that it may trigger there and that is not good. I have a short term TS in development, that's why it touches on this subject.
I understand you. I also have Breakeven in my algorithm, specifically on the pound it triggers after 750 pips. But the essence of my thoughts does not change even on the short term. I can advise you to try to calculate the stops purely mathematically. The problem: calculate the average optimal stop and optimal trailing stop adjustments based on the price spread of the instrument you are trading . I think if you can solve this equation you will obtain the same results in the strategy tester for N years.
I don't know how to put it simply :-))) Yes, stops and tokens are round. But they have to be calculated first... 800 and 1100 work only on GBPUSD.... On others, you have to sit down and analyse the chart...
I see your point. I also have Breakeven in my algorithm, and it triggers at 750 pips on the pound. But the essence of my thoughts do not change even on the short term. I can advise you to try to calculate the stops purely mathematically. The problem: calculate the average optimal stop and optimal trailing stop adjustments based on the price spread of the instrument you are trading . I think if you are able to solve this equation, you will obtain the same results in the strategy tester for N years.
It is clear that there are no universal recipes with stops, but I want to find a solution that will work for any system.
It's clear that there are no universal recipes with stops, but I want to find a solution that works for any system.
Uladzimir, of course, everything is in your hands. The only thing left to do is to try, test and exception, to find the best way to determine the SL for your EA.
As you correctly noted, there is no universal recipe. Everything is individual because it depends on the basic strategy inherent in the Expert Advisor.
Uladzimir, of course, everything is in your hands. The only thing that remains is to use the method of "trial", "tests" and "exceptions" to find the best way to determine the SL for your EA.
As you correctly noted, there is no universal recipe. Everything is individual because it depends on the basic strategy that is implemented in the Expert Advisor.
Let us look for it. As Yuri Nikulin said in the famous movie).