STOPLOSS
- LaMaquinaVerde
- Posts: 11
- Joined: Wed May 30, 2018 4:36 pm
Evening everybody, I've been playing around with a shared automation file (thanks Dallas) and as an automation virgin,I'm finding it all very interesting. I just have a question regarding stoplosses, does anyone find them useful when using automation prerace. In my limited experience I've found I'm getting stopped out only to see the price come back in. Thanks in advance. G.
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- Posts: 575
- Joined: Wed Apr 19, 2017 5:12 pm
- Location: Wolverhampton
From what I've read on this forum before, I think it's 50/50. It's down to preference and what your strategy is exactly. If you've noticed that happen, either loosen your stop loss a little, have a trailing one or test how well your strategy works with one not included at all.
If you are doing automation, then realistically you need some form of 'stop loss', otherwise you'll end up seeing a red trade disappear over the hills. If your using automation just for quicker entries, but still getting involved manually - I'd manage them myself. Markets quite often have momentary gaps, and that can be disastrous when operating a stop loss, as you'll often get matched for a loss when you didn't need to. I'd certainly NEVER use stop losses during horse racing IP
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- Posts: 575
- Joined: Wed Apr 19, 2017 5:12 pm
- Location: Wolverhampton
^ Good point. If you're using automation, you need an exit point trigger of some sort to actually close the trade. Whether that's a standard Stop Loss is down to you.