Thread: Query: Moving Stops to Breakeven

I have two concerns:

(1) As soon as I am in a position to draw fib lines, I have been shifting my stop to just beyond the 61.8% level. Is this a fantastic practice or is it detrimental in the long run?

(2) Concerning the maxim Never let your winners become losers. If this is taken literally, then the stop ought to be transferred to breakeven the moment the trade moves into profit, even if only by one pip. I did this the previous two weeks to achieve my 72% run up in equity. Naturally, this resulted in a lot of breakeven trades. No problem. I got back in on the next pullback. Is it a fantastic technique or is it detrimental?

Originally Posted by ;

Hey Diallist Lou,I am walking in the same shoes as you're...a 5 pip exchange I will not become a looser,just to watch running another 20 pips (but I am already out),but before you sit down in your computer you need to understand what you want to reach...
I exchange 4 pairs(more/less correlated) snack out 5-15 pips of this market it's all I need(4/5=20),so don't be sorry if you get stopped out. . .we all have to realise we are not prophets,even my ex country man Soros lost countless,predicting one year earlier the .com burst....but hey he is still around.
You James actually impressed me with 15 points stop/loss(it's too tight,brother),I use 30 pips mechanical(will kill my trade)30 pips is sufficient to me to prove,I am wrong...I consider 15 to tight(only on other day I opened in the end of Asian to watch for 2 hours not hitting my break going 15 against me exit in 3)
That is my 2cents,guys....
All the PIP's be with you

Due Hun,

Which four pairs do you exchange?

On what timeframe do you utilize your 30 pip stop? Hourly? Wouldn't you need to make it big on the Daily?

Is your 5-15 pips per transaction or per day?

What do you mean by (4/5=20)?

Hope you do not mind answering. Thank you.

Dial

Originally Posted by ;

Hey Diallist Lou,I am walking in the same shoes as you are...a 5 pip trade I won't become a looser,just to watch running another 20 pips (but I am out),but before you sit down in your computer you need to understand exactly what you would like to reach...
I trade 4 pairs(more/less connected ) bite out 5-15 pips of the market it's all I need(4/5=20),and thus don't be sorry if you get stopped out. . .we all must realise we aren't prophets,even my ex state man Soros dropped millions,predicting one year before the .com burst....but hey he is still around.
You James actually impressed me with 15 things stop/loss(it's too tight,brother),I use 30 pips mechanical(will kill my trade)30 pips is sufficient to me to establish,I am wrong...I believe 15 to tight(only on additional day I opened in the conclusion of Asian to watch for 2 hours not hitting my break going 15 against me exit in 3)
This is my 2cents,guys....
Each of the PIP's be together with you

hey hun, I knew I would raise some eyebrows. The reality is that the way men and women trade a 15 or 30 min chart you have to get a 30 to 40 pip stop and I am not saying it cant function like that. I pick at my entries with the utmost care and risk 15 to receive 10 to 15 trading 30 to 60 lots. I market a portion and then move my stop. If I put in a situation on an intraday basis with the idea that it may move 30 to 40 pips against me I screwed up the way I pick entrances.

[quote]

Originally Posted by ;

an how is MM more significant than exits and entries? You cant acquire a negative expectancy game along with your expectancy is set by your own entries and exits.

You also can goof up a fantastic expectancy system with bad cash management.

A chain is only as strong as its weakest link. I have never believed the other was not more significant than any one of them. Whenver I hear people say that entries aren't significant and that I laugh. It's not uncommon to say so nobody says that, that exits aren't significant. And it's not uncommon to minimize cash management so nobody does that -- so the only thing left to denigrate in order to seem trendy would be the entries.

Originally Posted by ;

therefore we're left with three essential aspects. . .entries, exits and MM, and also to give less or more focus on some of them not sensible imo, even though will make the case that one is more significant than the other. .

Oh ...I just thought of a fantastic analogy...

that's more important to your human?

oxygen, water, or food?

Oxygen is much more important if you're underwater and besides it's difficult to eat underwater. Clearly when you're underwater then water is not significant.

Now when you're locked in a giant food locker then water is more important because clearly there is oxygen there. I have never seen a giant food locker. Water would be the most significant.

However, if you were on a world with no food but lots of oxygen and water but no nitrogen then you're screwed.

FT

Originally Posted by ;

That is an important thread for ideas on preservation of capital.

Diallist, james, fiji, also:

I believed I had been' a chicken' by adjusting stops in order to keep losses at a minimum and assure at least some profit. Throughout the previous few months I've numerous less than 10 pip trades I'd begun to wonder if I fell into a mode that is brand new. I guess not!

KISS 10 great - 10 poor since the next transaction will probably be along in awhile.


RE: Trading on pullbacks. I believe I was absent the day they taught this! Please a brief explanation on how best to assess the area of the pullback as to not be taking contrary to what could amount to a reversal, a commerce.

Hate it when I find knowledge gaps. Enjoy it when they can be filled by me.

Lou

Adjusing stops in a minimum isn't poor, but you have to make positive you are correct in your time in 70-80percent of the cases.

In order for your trades to work better with the small stops, pullback entrances are ideal for your case.

I suggest opening a separate thread for entrances in general in which everyone is able to discuss his entry tehniques.

Thank you,

Nader.

Originally Posted by ;

Whenver I hear folks say that entrances aren't important and I laugh. It's not uncommon to say so nobody says that exits aren't important. And it is not uncommon to minimize money management so nobody does this -- so the one thing left to denigrate in order to seem cool are the entrances.
FT

I do not give a shit about looking cool!

My article above, referencing Van Tharp, was only made because I found interesting the disparity between his view of the comparative importance of entries along with the differing opinions provided in this thread from the traders on this forum.

If I remember correctly, Van Tharp was downplaying the value of entries when compared with money management when trading a mechanical system. However, when trading a discretionary system, it appears to me entrances increase in value.

Merlin has correctly pointed out that three; entrances, exits, and money management, are necessary elements of trading. You have correctly pointed out that the significance of each of these 3 elements varies with conditions. (forgive me if I have misunderstood you).

I think that the relative importance of entrances, in comparison to exits and money management, is a part of where the trader is working from the broad range between, and inclusive of, pure mechanical and pure discretionary systems.

My perception is that James16's trading style is highly, if not totally, discretionary. In that context, I believe accuracy risk entries are rather important.

Narafa has helpfully indicated a new thread be started for everyone to talk about their entry techniques. I believe this is an excellent idea and am going to start this thread. I hope you and the rest of the successful traders on this forum will share your experience on that thread.

Diallist (Cool with being un-cool )

Except for this post. I have not been paying much attention into the forum for a number of weeks now, and return to find out that lots of prople are doing great, read the wonderful james' thread, and read about the MB (MuddBuddha?) system.

Can anyone please direct me to the thread were the system is clarified?

Thank you very much,
Bonete

Hey Jim, I went back and looked at quit a few of the SAR trades. You miss several deals that are genuinely good, although it looks as if you're right on occasions. Is there some way to test if you set to a quarter of your commerce with the system if it comes back in the 6 to 8 bars and add more? It appears that may be a viable idea, if you want capitol preservation.
Pipmon

Originally Posted by ;

I have an assignement for everyone. Predicated on mb's system go back and look at the crosses where price came straight back to the 25 or near it either after the cross or within 6 to 8 bars. Your risk is substantialy less and if it does go sour you have not lost 40 or 50 pips. A lot of times you may ch 10 or 15 pips on a bounce before going sour so you've got a profit instead of a loss. Dont get me wrong, a lot of people have been having good success trading the way mb states and hey thats fine. All I am doing is offering a different approach to playing with ma cross overs to lower the risk. You are going to miss some trades doing it this way. What you may notice is that by entering this manner it enables your stop to be 15 to 20 pips, sometimes less. jim

Originally Posted by ;

Hey Jim, I went and looked at quit a few of the SAR trades. It seems like you are right on numerous occasions, however you miss several trades that are good. Is there some way to check if you set on a quarter of your trade if it comes in the 6 to 8 pubs and then add more? It appears that may be a viable idea, if you want capitol preservation.
Pipmon

yes you are right but I am prepared to give up a few good trades to maintain risk as low as possible. I'm sure a entry as you describe is a feasible option.

If you're correct on the machine have a look at the eur/usd on a daily basis. Interesting, particularly with almost getting to 1.2250. Perhaps someone should load up to the run back up.