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Startedat10k t1_j6b09nk wrote

Depends on the % I set for a gain. Loss is usually half of that.

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United-Display-386 OP t1_j6b0qvp wrote

For my algorithm, the exit point( sell price is normally from .08% to 3% / transaction😃

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patriots317 t1_j6be1ht wrote

Have fun being poor with that algorithm

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United-Display-386 OP t1_j6bf7ug wrote

Can you share us the better strategy to being rich 😄?

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patriots317 t1_j6bfh0x wrote

Are you a professional day trader? If not. Don’t have stop losses. Research. And invest over time in companies you believe will be worth more in the future. Once you’re up by 10/20%. Start selling otm covered calls a couple of weeks out with a small premium. Also dont invest money you’re not willing to watch go to zero.

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345612345 t1_j6chl41 wrote

The last sentence pretty much cancels everything you said before...

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BitSoMi t1_j6cxx2t wrote

„Dont have a stop loss“ man , wallstreetbets 😂

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patriots317 t1_j6d2elj wrote

All my biggest trades started with pretty heavy losses. Sometimes around -50 to -60%. I’d never be where I am today if I tied A rope around my neck at -5 or -10% and had stop losses. You gotta have balls in this game kid. If not. Get out.

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BitSoMi t1_j6d32as wrote

Thats called luck, not any form of risk management. And luck runs out at some point 👌🏻

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patriots317 t1_j6d3dzr wrote

No. It’s called research and trusting your plays. The market whipsaws all the time. Again I’m not talking about day trading. That’s for professionals. I’m talking about mid/long swing plays while selling premium. Have fun staying poor.

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BitSoMi t1_j6d3s07 wrote

Imagine bragging about trades where you were down 50-60% on a swing trade, got lucky on a reversal and needed at least 100% just to break even. Lol. The stop loss dude is always ahead of you if the trade goes against him and reenters at a better price point. No wonder dudes lose everything on here. Pure gambling

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patriots317 t1_j6d47oy wrote

It was otm options with a strike 6-8 months/ surrounding a time with a positive catalyst for the company. Being down 60% at one time with a plan to average down over the course of 8 months isn’t that big of a deal. The stop loss cripples you. Again,unless you are professionally daytrading, which is also extremely difficult but not many people can do. They can see your stop losses.

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aerodynamic_AB t1_j6b086l wrote

Got Tesla calls and puts with no stop loss. Call me crazy but it is the nature of the games. Win big or lose big!

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BertAnsink t1_j6b2uy4 wrote

Around 2-3% total portfolio value.

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And size the position so that your SL is not likely to be hit in one day.

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If you have lost on your trade, it obviously means that you can loose next on next trade as SL will be 2% of your new portfolio size.

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2-3% seems low but think of this. If you loose 25% of your portfolio value you need to make 33% to come back to break even. Loose 50% and you need to make 100%. Loose 75% and you need to make 400%.

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Lack of risk managment is why people don't tend to recover from the inmense losses posted here.

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United-Display-386 OP t1_j6b3lj8 wrote

I should make clearer question “ How many % do set up for cut loss/ transaction”😲. ”

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BertAnsink t1_j6b5yz0 wrote

Yes usually 2-3% of total portfolio value.

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I usually take ATR(9) as a guide for how far away the SL needs to be.

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So say I am trading ES futures with $50.000 in my account. I would put the stop at $1000. ATR(9) for last trading day is 60 points. For ES futures it's $50 per point. So 1x future with a 60 point drop would give -$3000. In this case I would shift to MES that do $5 per point, ie 4x MES with a 60 point loss will give -$1200. Set stop at 50 points in that case.

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There is more to all this since I often trade futures against shares. Ie I own the shares and sell futures short. In this case I can short more futures since I have long shares that cover the loss if I am wrong.

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On options I usually sell them, either puts at a point where I think the stock is low and has high IV or calls after I think we have reached a peak. Collecting the premiums gives you more opportunities than pure directional betting where it's simply win or loss.

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I also try to diversify into uncorrelated assets where opportunities arise. Ie last year I have traded a lot of WTI futures spreads which was good business. The market has stabilized for now but I am looking at QG (Natgas) since that went down the toilet over last month.

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I keep a daily excel sheet which calculates total portfolio volatility so I have a track of Value at Risk for a given day.

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United-Display-386 OP t1_j6b6m7r wrote

is often the %Win > than %losses At the end of the month . I know I need to train my mental health to accept the lost day . Still chicken 😅

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Express-Rice-6415 t1_j6flele wrote

I think its also the lack of understanding of how compounding small percentages on on a steadyish avarage can make you filthy rich, but this is wsb we here for a good time not a long time :D

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RemmingtonBlack t1_j6b1alj wrote

I wish I would have listened to it years ago, but I watched a video that said (options) never come back from a 50% loss...

I would have only lost half of what I lost over the years.

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With shares I'm still willing to hang in there... there is news, fundamentals, financials for that decision...

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ToXic_Trader t1_j6cn9jl wrote

yeah looking back i lost alot of trades not cause i was wrong on the direction but cause i was too impatient to hold it longer

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pharmboy008 t1_j6kdxzs wrote

I’m gonna call bull shit on this one. I’ve rode the wave down to -50% back up to +50% on more than one occasion.

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RemmingtonBlack t1_j6kyp6s wrote

that's great son....

this guy once said that I will never see the sun perfectly covered by the moon... I called bullshit on him too...

..........WINNER

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Blindside783 t1_j6cghm9 wrote

If you use robinhood citadel thanks you for using a stop loss

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Toiletboy4 t1_j6b1qf8 wrote

You risk R and try to profit 2R

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ytman68 t1_j6b6bu7 wrote

max of 15% if you are day trading and max of 30% if you are holding the asset long term

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United-Display-386 OP t1_j6bb6hp wrote

Why it is 15% in stead of 8 or 10% for day trading?

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ytman68 t1_j6bj7py wrote

​

https://preview.redd.it/slprbc4x2yea1.png?width=575&format=png&auto=webp&v=enabled&s=bb7748c294e043d36546ae9f873f7a11b17d5e07

Try using these three indicators from tradingviews. Works well for longer timeframe 3H,4H and 1 day. Add them to your chart study how it works bets for you. These indicators will help you to stop day trading (Day trading is not the best for most people).

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Baconstrips96 t1_j6ba18e wrote

15% auto sell for me

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United-Display-386 OP t1_j6bb3ik wrote

Can you explain more details why do you set 15% 🧐 if you are a full time trader? For 15% means the stocks can be hold for some days ( they may have more chances to bounce back🧐?, ( seems many people set this % too).

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Baconstrips96 t1_j6bh66n wrote

Just found that in my experience 15% down from when I bought in means my due diligence and decision was wrong. And most likely will continue to plummet. Obviously it depends what the play exactly is. But for the most part once it hits that point that’s where I’m comfortable backing out.

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surfward t1_j6c6s3r wrote

Options or shares?

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Baconstrips96 t1_j6dxwt1 wrote

I don’t mess with options. Not knowledgeable enough to produce fruits. Would just end up losing all my money like most others here lol.

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paulc19802 t1_j6baohn wrote

I don't. Or at least try not to.

I used to and I lost money fast selling at a loss only to then watch the stock I no longer had go up a stupid amount a few days later. I'm basically an expert at setting my stop loss just above the next swing low before a move up.

If I'm buying stock I'm buying something I have faith in and I'll just average down.

If I'm gambling whatever my maximum risk is I'll just take that money and buy calls with it instead.

The only exception is if I can't afford 1 contract. But then I set my loss at recent swing low whatever that happens to be. I'll then decide how much I'm willing to bet (lose). Whatever percentage my stop loss is is then the multiple for what I'll invest in the gamble. That way I don't have a set percentage.

Example, I'm willing to bet $100. Just under recent swing low is a 10% stop loss. Therefore that's my stop loss and I'm buying $1000 worth. If the recent swing low happened to be 20% I'm buying $500 worth instead.

Or alternatively I'll just buy $100 worth if it's a massive gamble and I can't afford a contract on it and go zero or hero. But obviously in that scenario calls are much preferred.

If it's for the purpose of algo trading though I'll usually stick with 1:1 because I prefer a higher success rate than more money per successful trade. But even then I'm not a fixed percentage as I use SAR for my stop loss value.

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st3alth247 t1_j6be9hm wrote

~1 % but i have to review my strategy. Made it yo get burned this year. Hard to believe, but i got burned

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United-Display-386 OP t1_j6bf26j wrote

Because of the broker fee or maybe because of the stock you pick 🧐?

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st3alth247 t1_j6bhqly wrote

Because i have to admin that i fell to a little gambling addict. Thought every time " this was bad luck i make a revenge trade" Im still in the learning phase- now i have met my addict side as well.

It honestly would better, if my stop loos wasn't so tight at all. My position were getting bigger and bigger but i didn't adjust the stop loss percentwise

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United-Display-386 OP t1_j6bhx4a wrote

Exactly the same spot here that happened in the past 😂

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st3alth247 t1_j6bifl6 wrote

You mean that happend to you as well?

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United-Display-386 OP t1_j6biju5 wrote

, it’s called “ emotional “ when we were newbies

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st3alth247 t1_j6bjxn1 wrote

Yep true. Difference is, that I'm not a real newbie. But i think that i- young padawan, still to learn a lot i have

Brzlllll, reality check

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United-Display-386 OP t1_j6bk4pe wrote

I know I have to learn a lot 😭

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st3alth247 t1_j6bkhmk wrote

That's good my friend, that's good. Live is a journey. As long as we know we have to mastering our demon everything is fine. With every failure, we are becoming more efficient

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ScutumSobiescianum t1_j6bfjgi wrote

Oh my, seems like too many maths traders instead of momentum traders. Stop losses should always and forever be set not on numbers but on momentum trendlines. You’ll save yourself plenty of pain that way and maximise your risk reward scenario.

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United-Display-386 OP t1_j6bftak wrote

Involved to trading for last 2 years. Failed miserably because of emotional side do I decided to build an algorithm which can help people to avoid the same mistake ( I hope so😄)

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ScutumSobiescianum t1_j6bnp4z wrote

Drop the algorithms and go with actual state of play, in otherwords follow the trend. Trend is broken, you sell. Otherwise you keep moving your stop loss up to run with the momentum. Been trading for years and our records are for all to see, as long as you are disciplined and follow a strategy most trades are going to be winning ones.

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United-Display-386 OP t1_j6bhipu wrote

My algorithm works on fundamental ( which I hope I can spend as less as possible to trade but make up a stable daily imcome😁)

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ch4m4njheenga t1_j6bsu56 wrote

My PLTR and FSLY holdings say it has to be close to 100%

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scalper84 t1_j6cq70s wrote

At most 2% of account. But usally lower like 2 R a day for loss and I try to stop at 6 R for winning days.

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jloy88 t1_j6cyp1l wrote

For options (SPY/UVXY) I cut losses at -30% and start to trim some profits at +55%,

for stocks I cut losses at -12-15%. Profit trim at roughly the same. (+15-20%)

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TheDoomfire t1_j6d1iwf wrote

Not any.

I buy more if it sells at a lower price.

If I suddenly think I was stupid to even buy it I just hold it.

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Pdbabb66 t1_j6dc8iu wrote

I use ignitions candles. The candle that got me in is the same candle to get me out. I only trade SPY options.

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dnt203 t1_j6dyfav wrote

99.99%

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rightsideofrandom t1_j6i4j6z wrote

my daily stop is 1% of my risk capital and my per trad stop is. 0.25%

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United-Display-386 OP t1_j6jglny wrote

If trade stop is .025 is it too early because we have to pay for broker fee as well ?

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