Cut Your Losses?? (Mean Reversion)

Learn sports betting strategies and discuss key factors to consider when placing a bet.
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Crazyskier
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LeTiss 4pm wrote:Blimey, 4 years ago

Things have changed significantly since then, but I stand by original disapproval of stop losses.

We have seen BA automation go to a new level since then, so a stop loss is obviously a key part of an automated trade. However, if you are watching a market, a good trader should be able to rescue a situation manually far better than an automated stop loss
Agree absolutely!

Even on my set and forget daytime automation I have several green ups / hedge outs before the off, so that I don't actually need a prefixed stop loss, and on the overwhelming majority of cases, the profits outweigh the losses per event. The loss amounts are bigger when they occur but the wins are also far more frequent to balance this out.
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dlbanks2015
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I've had problems with the stop loss too. I don't trust it anymore to be honest. I've tried to stop out on a 10 tick stop loss(say £5 and it's shafted me for £35. It's come to the point where I won't use it now. I'd rather hover over the hedge (left of ladder) or the opposing side to get out at my exit limit. Or just close the trade with a short key.
I think the stop loss may need to be set up so that you up ur stake on the stop loss so it evens out the loss???
I've only been trading a year so..... I'm still figuring things out to be honest
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ShaunWhite
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dlbanks2015 wrote:
Thu Oct 19, 2017 11:19 am
I've had problems with the stop loss too. I don't trust it anymore to be honest. I've tried to stop out on a 10 tick stop loss(say £5 and it's shafted me for £35.
Is that because a rapid movement has meant that your stop transaction remained unmatched? It's reasonable to use stop losses in certain situations but the actual closing trade might need to be placed a little deeper to ensure it's matched. Once it's matched you can the tidy up the odd bit of rounding at a more leisurely pace.

On right click 'Stop losses': Should BA keep them if you go and look at a different market? It doesn't seem to.
I'd personally only use stop losses if I'm not going to be watching a market for a while, but when I toggle to a different market, the right-click stop loss on the first market gets removed.

I thought that's really the whole point of stop losses, if you're watching the market you don't need them, but if you're going to be away from your desk or otherwise occupied, they watch your back.
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GaryCook
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Anytime I do a stop/loss it just works out worse than seeing it all the way through whatever I would have done.
Strategies tend to work or not with or without stop/loss. In my experience.
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ShaunWhite
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GaryCook wrote:
Sat Feb 03, 2018 3:48 am
Anytime I do a stop/loss it just works out worse than seeing it all the way through whatever I would have done.
Strategies tend to work or not with or without stop/loss. In my experience.
That's simply not correct. If you don't have an exit strategy, you're not trading.
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GaryCook
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Stop/loss isnt the same as an exit strategy, per se. At least to me.

For example the difference between trading out at a fixed point and greening up whenever you are winning/losing.
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ShaunWhite
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GaryCook wrote:
Sat Feb 03, 2018 4:21 am
Stop/loss isnt the same as an exit strategy, per se. At least to me.
A hard stop on a volatile market is usually a bad thing, but thinking about where you manually stop a position is trading imo.
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GaryCook
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That was a very good point! :)
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Derek27
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GaryCook wrote:
Sat Feb 03, 2018 3:48 am
Anytime I do a stop/loss it just works out worse than seeing it all the way through whatever I would have done.
Strategies tend to work or not with or without stop/loss. In my experience.
How long is your experience ?

If you're not willing to stop your loss, whether it's by manual or auto stop-loss settings, you're not trading but gambling.

Traders generally use much larger percentages of their capital to trade than gamblers so if you let the bet run you're just trusting a large chunk of your capital to luck, which defeats the object of trying to make money trading.
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Derek27
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I understand now why stop losses make no difference. If you're using 1p stakes, it doesn't really make any difference whether you win or lose!
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GaryCook
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True, I need to get better with trading and do that more than gambling. I think it hard to read the markets though and knowing when to get in or out at the right times.

I bet some of you had a cracker with that 2-1 today. :)
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Derek27
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Where have you been for the last four months? ;)
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wearthefoxhat
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PeterLe wrote:
Thu Mar 13, 2014 11:34 am
LeTiss 4pm wrote:Blimey, 4 years ago...........
Its passed quick hasn't it! :D
Do you think we will still be here in another four years mate?
....If so, Ill reply to this post in march 2018! :D
Well, we're still here! :shock:
PeterLe
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wearthefoxhat wrote:
Sat Dec 07, 2019 8:18 pm
PeterLe wrote:
Thu Mar 13, 2014 11:34 am
LeTiss 4pm wrote:Blimey, 4 years ago...........
Its passed quick hasn't it! :D
Do you think we will still be here in another four years mate?
....If so, Ill reply to this post in march 2018! :D
Well, we're still here! :shock:
Wow over nine years since the original post!
And I'm still running compare/contrast strategies between accounts.
If the original tests were run on todays markets i wouldnt be surprised to see similar results

One thing I have changed since those days is that I dont green up anymore. In my experience, this gave me better results (even greening at reverse is out)
Maybe Ill post on this again in another 10 years (December 2029) , I wonder how many of us will be around then! :D
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Kai
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Brilliant, you guys are my real inspiration 👍

Can't imagine anything harder than achieving such longevity in these markets.
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