Hi All,
Just looking for some money management advice. I have now traded around 1000 races and have a strike rate of 62% however I am making a loss. I have trouble minimising my loss as I am always hoping the market will bounce back in the right direction. I have tried putting a stop loss on the ladder of say 3 ticks but when I have tried this, the market seems to bounce back on around 50% of occassions so if i had held out would have made a profit. Any advice would be appreciated on how to manage losses. Thanks.
Managing losses
You are suffering from loss aversion. The pain of a loss is always much more than the joy of a win.Jimbo95 wrote: ↑Thu Jan 14, 2021 10:37 amHi All,
Just looking for some money management advice. I have now traded around 1000 races and have a strike rate of 62% however I am making a loss. I have trouble minimising my loss as I am always hoping the market will bounce back in the right direction. I have tried putting a stop loss on the ladder of say 3 ticks but when I have tried this, the market seems to bounce back on around 50% of occassions so if i had held out would have made a profit. Any advice would be appreciated on how to manage losses. Thanks.
The answer is to accept losses as part of trading. On the greyhound forum I recently posted my own strike rates from best and worst tracks for me. You can’t win them all, losses are inevitable and natural.
Where did you post that? can you put here the link to the page I would like to see?
I wouldn't bother with a stop loss to be honest. The market will jump up and down as it meanders in one direction or the other, having a stop loss at 3 ticks means you will accept the loss when the price is in a natural swing up or down. It is too close to your opening position.
Obviously, without knowing the specifics of your trading it is difficult to say but I'd suggest lowering your stakes and letting trades run for longer, give them time to breath and let the market run. Having a Stop Loss at 3 ticks will get you stopped out about 75% of the time even when your original thought was right.
If you lower your stakes your loss could run to 10 ticks and, money wise, you'd still be inside your risk tolerance and see if you were right or wrong at 00:00. Automatic Stop losses aren’t for me really.
Obviously, without knowing the specifics of your trading it is difficult to say but I'd suggest lowering your stakes and letting trades run for longer, give them time to breath and let the market run. Having a Stop Loss at 3 ticks will get you stopped out about 75% of the time even when your original thought was right.
If you lower your stakes your loss could run to 10 ticks and, money wise, you'd still be inside your risk tolerance and see if you were right or wrong at 00:00. Automatic Stop losses aren’t for me really.
- The Silk Run
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I would concur that is very sound advice. Especially let the trade breathe analogy, I have always used that approach.
- Realrocknrolla
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+1The Silk Run wrote: ↑Fri Jan 15, 2021 11:22 amI would concur that is very sound advice. Especially let the trade breathe analogy, I have always used that approach.
I sometimes enter at X time before the off! One min in and i’ve been in the red.. several moments later, be it minutes or seconds, normally minutes the trade comes off! Ride it. Enjoy it! Choose your trade. Enter and Exit plan.
Having been here, also at the 1000market point, I would say there is no easy answer to this. The advice of letting it breathe and small stakes is the right way, and it took me a while to submit to this! However, don't expect to get smaller overall losses, as was my case my losses got bigger as I was letting bad trades run further! Hence, why use small stakes. If your method is not +ve expectancy, then you're just going to end up with bigger losses, but remember your method includes where/when you get out of a bad trade. Peter's videos quite often state, "if the trade ends up roughly down here, I know it's wrong".Jimbo95 wrote: ↑Thu Jan 14, 2021 10:37 amHi All,
Just looking for some money management advice. I have now traded around 1000 races and have a strike rate of 62% however I am making a loss. I have trouble minimising my loss as I am always hoping the market will bounce back in the right direction. I have tried putting a stop loss on the ladder of say 3 ticks but when I have tried this, the market seems to bounce back on around 50% of occassions so if i had held out would have made a profit. Any advice would be appreciated on how to manage losses. Thanks.