Quote:
Originally Posted by mitaji  Hi Ken,
I am using version 45 pro so yes I can and will reduce my stop loss but I dont recommend anyone else do so. I have a long term vision for fap turbo. I do expect losses, but not 112 pip losses. If you've seen donnaforex' account statement you'll notice the huge losses, but over 5 months shes made over 300% return on her account. As far as future volatility is concerned.....I will also not be trading around holidays and news announcements or earnings season announcements. I would rather miss a few small profitable trades than suffer a huge loss. |
Understood, trading around holidays and news anouncments has been proven problematic. The only way to do this is to start with that intention and a system designed for it.
But, the real question is, if your going to tighten your stops, what criteria are you going to base your judgement on. The way the robot takes trades is often a little different than the way I would manualy, and often if I simply set a manual stop by my trading standards it would get taken out. I have seen many trades that I didnt like turn around to profit, or nearly breakeven. Thats why I mentioned volitility assessments, not to concern about holidays and such, but to have a factor to base stops on.
Unless, you plan to be there to manualy oversee the trades, which is probably the best method. It doesnt require constant monitoring, just checking at intervels to spot potential problems, and watching for breakouts in the wrong direction. I dont usualy change the systems stops unless I see something obvious, but when I see a trade thats obviously gone bad I will often itervene and manualy manage it to seek the best exit. In this case I would adjust both stops and targets, draw support and resistance and trend lines, check the larger retracement levels and the wave counts, and try to calculate the best exit, either by a stop, or by selling on a bounce back.
But this is all a bit harder to do in advance. Thats where current volitility assessments can come in, unfortunately the volitility during this time period is generally much different than the normal volitility, and basing stops on an average range is not generally accurate. Either way I agree that something can and should be done, its just not easy to do it in advance.