Unless you’re okay with nightmares, DO NOT ATTEMPT.
I broke an important unspoken rule of Forex Trading. That is NOT setting a stop-loss. I say it’s unspoken since stop-loss is almost natural to be part of every trade.
But actually, no one's gonna punish anyone had they omitted stop-losses. Probably, the only grave consequence is the possibility of a bigger loss.
For those who have followed my journey know that I used to set stop-loss. I do! Let’s just say I’ve pressured myself into performing positively every month. It’s to the point that I don’t close any negative trade. Hence, I’ve recently done this No Stop-loss Strategy.
I know karma is out to get me soon. In the meantime, I’m sharing you what worked for me—that may work (or not) for you:
1. Go for SMALLER Trade Size
Remember you’re NOT using Stop-loss. Therefore, you’re gonna lose big IF the trade goes against you! The only effort for risk management here is Trade Sizing. I’m only using 0.05 in EurUsd. That is worth around half a dollar per pip.
If it goes 60 pips against me, then I’ll be HOLDING -$30. You read that right. I hold the trade UNTIL it reverses, become a smaller negative, or better yet, become positive.
Considering my Equity size at around $2500 as of August 2019, I figured this is still tolerable for me. Also, I’m in 1:100 leverage. The Required Margin would also be smaller. Tandem this with an opposite position trade/ hedging, it would save on the Margin Percent keeping me away from getting Margin Called.
2. If possible, Go for Positive SWAP Trades
Based on my own observation, Swap is not a common topic in the Forex world. Well, traders just rant about it being annoying because it usually entails negative dollars. But it’s rarely celebrated when it’s positive. The amount and position depend on the broker, however.
Generally, a EurUsd Sell (Swap Short) overnight trade gives positive swap. You may check the currency pair’s Properties to see which position is giving positive swap and to some extent, by how much. I’m sharing you this tip since I HOLD trades. Since this is the case, it would be less of a headache to hold a positive swap trade.
3. Make as much Positive Trades
Actually, there would be no problem had your trades proceed as expected. But due to some Fundamental news, the market just disrespects your strategy. Hopefully you’ve done Tip Number 1 so you’d still be fine.
If and when the market veers away from expectation, you will have to make an opposite position trade/ hedging. I personally would say that the other trade SHOULD be close to the initial trade (like 40 pips away). This is to make most pips out of it. Squeeze out the positive until there’s sign of reversal.
If the market continues, then you have to keep making opposite trades. Close them on positive. Keep banking despite smaller profits until next probable reversal. The idea is getting away from Margin Call. For it to be possible, Margin should be saved up while the Equity grows through winning.
I kept saying on other platforms especially on Youtube that I got 9% last July. Upon checking myfxbook account, it’s at 11%. Apologies I’m not good in Math. I made it out positive but it has seriously been giving me anxiety. I can’t bring myself to close the bad trades. I ended with more bad trades.
August is nearly finished. The last time I checked, which was a week ago, I’m up by 6%. The total of my bad trades is bigger than July. I got myself into this trouble. On the brighter side, that goes for my Equity too. It's bigger now.
So far, the only solution I could think of is to keep bulking up the Equity. Either by winning trades or doing extra income outside trading that I would deposit to my account. Not to be blatant but Thank God XM is giving trading bonuses.
Happy trading everyone!
@marilesaca || Trade Kitten :3