Invent ‘Time Machine’ and go back and tell my past self to put SL a bit lower.
Shawn said:
Invent ‘Time Machine’ and go back and tell my past self to put SL a bit lower.
Why not buy at stop loss instead?
Shawn said:
Invent ‘Time Machine’ and go back and tell my past self to put SL a bit lower.
Why not buy at stop loss instead?
There are few things that you can’t avoid completely like this post. Every trader will have trades like this no matter how big of a stop you use. The only solution to avoid these scenarios 100% of the time is a time machine.
@Shawn
But like the double slit experiment, wouldn’t the action of observing what happened change the outcome?
@Shawn
I know but with a Time Machine I could technically just bottom tick into the trade with 400x leverage instead of making sl bigger
Don’t use a SL
Conley said:
Don’t use a SL
really helpful 
Place the sl lower. If you put your sl 10-20 pips lower than the last liquidity you will most likely get stopped out. Everybody puts their sl there. You can’t be profitable being everybody. You have to be as different as the best %5. If you put your sl the same as everyone else, how do you expect to be profitable?
Blaire said:
@Grady
I think 10-20 pips is too much, especially for a 5min chart. You sure it’s not 10-20 points?
It all depends on the average true range of the price. If the market is volatile and price moves significantly, even on an M5 chart, the specific amount of pips is relative and not particularly important. However, in a low volatility environment, using a 20 pip stop loss on an M5 would not make much sense, and you would likely pass on the trade altogether. In this case, though, his stop was positioned in a spot that was highly likely to get triggered before the next significant move occurred.
Blaire said:
@Grady
I think 10-20 pips is too much, especially for a 5min chart. You sure it’s not 10-20 points?
I think you should look at the charts to see where to put the sl. If the sl is too large and more than your risk management allows, it’s not a good trade for you. I personally use a 15m chart for my trades, and I rarely need to place the sl further than 20 pips.
Conley said:
Don’t use a SL
really helpful
It is actually. Trading with SL is not a requirement; it is supposed to be an integral part of your strategy. If the SL is the cause of your losses, then it means you don’t understand how to use your strategy and you should change it; perhaps you’re more of a trading without SL kind of guy? I know I am.
Once I got a situation like this, I normally stop trading the instrument for a few hours. This helps me to prevent overtrading or, in this case, revenge trading.
Sometimes you are right on the direction, but have a lousy entry. This will happen, and I see it as a ‘cost of doing business’. In my opinion, you should evaluate your trade and think about the ways you could improve your entry.
If this happened to me, I would deduce that my stop size was too small.
I would then go back through all of my past trades (both live and backtested trades) to see if a larger stop size would make me more money in the long run or lose more money in the long run.
If increasing stop size = more money;
Then increase stop size.
If increasing stop size = less money;
Keep stop size the same.
You trade your strategy with discipline, and if you set your trades up right, moments like these take you out at an acceptable loss or they go in your favor and all of a sudden your strategy looks pretty good.
The point being these events happen all the time, and a successful strategy accounts for it.
I cry.
Wait for a pullback.