What % stop loss do you use?

[chops_a_must]

Again, I'll let others decide if what I post is useful.

But a perusal of these boards will show that I am quite willing to share whatever knowledge I may have, freely.

He has at various times, corrected me, or given me more information to help understand my position as the case may be. Even in the short time I have been here this has been the case. And that's what it is all about. After all, the more perspectives, the better.

 

[emma]

Could we get back to Tech A's look at stops, fractional position sizing and effect on portfolio pleeeeease.

 

[tech/a]

Take care of RISK first and PROFIT will come.

Using the example of MCO and IDL most seem to be confused with the standard 2% risked / trade. (This is simply an accepted standard and is by no means hard and fast,traders trading larger capital bases will often use much less).So if we were to take say 2 positions of $5000 each with no consideration for position sizing relative to position of stops the equation would look like this.

MCO 11,900 @ .042c maximum risk $200 or approx 1.5c.Not much room! and no logical placement of a stop.

IDL 18000 @ .275 max risk $200 or again approx 1.5c.

So you can see the dilema with a smaller capital base.Everyone wants to buy as much as they can to gain as much profit as the "Think" they can get in the shortest possible time.

This is what often happens and Im sure most here can associate with the following.

 

[2020hindsight]

can I make a comment and/or ask a question - yet another 2c. But why is it that everyone who causes trouble around here ( BullMarket, SpaceCadet, RocketScience etc - ahh yes and Brisvegas) are all "on permanent holidays". or is this obvious?

oops I should say "why was it" (past tense) I notice that brisvegas is no longer a member. - has gone the way of bullmarket etc

 

[nizar]

Take care of RISK first and PROFIT will come.

This is so true.
Yet most newbies fall into this trap ie. not controlling their risk.
A mate of mine got "stopped out" on FML and lost $1,200.
His total capital is $10,000.

 

[It's Snake Pliskin]

This is so true.
Yet most newbies fall into this trap ie. not controlling their risk.
A mate of mine got "stopped out" on FML and lost $1,200.
His total capital is $10,000.

A paradox.
It seems he/she was using a 12% of total capital stop loss

 

[tech/a]

Snake.

Possibly that old favorite the "Pain OH the Pain" stop.

 

[Julia]

can I make a comment and/or ask a question - yet another 2c. But why is it that everyone who causes trouble around here ( BullMarket, SpaceCadet, RocketScience etc - ahh yes and Brisvegas) are all "on permanent holidays". or is this obvious?

oops I should say "why was it" (past tense) I notice that brisvegas is no longer a member. - has gone the way of bullmarket etc

Yes, could we have a comment from a moderator regarding the apparent banning of brisvegas, please.

His posts have been somewhat inflammatory, but to my mind no more so than many others on other threads which have been allowed through.

Unless there is something else which has been deleted, or about which we don't know, banning him seems somewhat extreme, and makes me feel quite uncomfortable.

Julia

 

[2020hindsight]

Yes, could we have a comment from a moderator regarding the apparent banning of brisvegas, please.

His posts have been somewhat inflammatory, but to my mind no more so than many others on other threads which have been allowed through.

Unless there is something else which has been deleted, or about which we don't know, banning him seems somewhat extreme, and makes me feel quite uncomfortable.

Julia

Julia,
lol - Im not the slightest uncomfortable -
I personally dont have much time for chameleons
http://en.wikipedia.org/wiki/Chameleon

 

[nizar]

A paradox.
It seems he/she was using a 12% of total capital stop loss

Yep.
A crazy guy.
Had a few big wins and feeling quite invincible now.
He cannot handle 10 losses in a row (obviously) and i feel he wont last long.
This bullmarket would probably keep him afloat for a bit longer though.

 

[wayneL]

Yes, could we have a comment from a moderator regarding the apparent banning of brisvegas, please.

His posts have been somewhat inflammatory, but to my mind no more so than many others on other threads which have been allowed through.

Unless there is something else which has been deleted, or about which we don't know, banning him seems somewhat extreme, and makes me feel quite uncomfortable.

Julia

Julia,

It was behind the scenes stuff that need not be aired in the public forum.

Cheers

 

[borat]

Could anyone suggest a good reference on Fixed Fractional position sizing? Googling doesn't offer any great resources from my search, probably cause I dont know too much about what I'm looking for...
If anyone could take the time to explain the basics it'd be appreciated, or just point me in the direction of some worthwhile resource you already know about...

Cheers.
B.

 

[MichaelD]

Could anyone suggest a good reference on Fixed Fractional position sizing?

Search here on this forum. It's a topic we've covered numerous times in several threads.

 

[tech/a]

The Trading Game by Ryan Jones.

Is a must for all traders libraries.ISBN 0-471-31698-9

Publishers Wiley.

 

[weird]

Borat,

http://www.stator-afm.com/money-management-articles.html

 

[tech/a]

No stops hit today in our exercise.

 

[tech/a]

Havent forgotten the exercise on stops here.

Nothing further to report all stops still in position and no trades have been closed out by any of the stops yet.

I have included the EXIT that will be adopted for the exercise.
It is one of my custom indicators constructed around Parabolic SAR.

 

[tech/a]

Both still in play IDL did not close below the stop but on the stop.