Stop Loss-less Trading

Having lost 157 pips in the previous trade, I took a long look at my trading history.

I discovered the following:

1. Almost all my losses since I started trading in December 2007 (last year) is caused by
Stop Losses. Only a handful is caused by my manually closing the trade (when the price was
going the wrong way).

2. In most cases, after the SL was taken out, the price would reverse direction and go the
right way.

3. None of my trades came close to margin calls, even after the SL was taken out.

4. Many of the SL was taken out by sudden price spikes (conversely, a few of the TP hits are
also caused by price spikes).

Based on the above observation, I hypothesise that, my losses are invariably caused by Stop Losses. This begs the question:

How to avoid losses?

And the only logical answer is:

Do not use Stop Losses.


I will now embark on a new revised One-Pip Range Trading Strategy. All of the strategy will
be the same, the only difference is:

Do not put in Stop Losses.

For this to work, I must be willing to accept the following:

1. I must be prepared to lose my entire capital. And I surmise that, I am prepared to do so. Whatever profit I want to keep, I will withdraw from the Oanda Account, and whatever is left in the Account is the amount I am willing to risk losing. That will be my psychological preparation.

2. I should not trade large amounts of units, not more than 1000 units.

With that, I henceforth trade SL-less.