No Stop Loss..?

Trading WITHOUT a stop loss is recommended when using Keiko signals (unless specifically stated in the setup instructions). And if you look through many of the bots on 3Commas, the majority are without a SL. This is however contrary to what many traders have been taught and certainly leads to concern and confusion. We are not advocating with or without stop-loss, that is for an individual trader to decide. But if using Keiko signals, it is demonstrably more profitable when run without. This, of course, means you have to follow good money and trade management.

Below are a few examples taken from the live 3Commas Market Place stats.
All these trades are based on Keiko signals and all seemingly have loses.

BTC-QSP

Initially there was a loss, we don’t know the circumstance since this was one of our members who received our signal. We assume the trader set (against advice) a stop-loss of -3.70% and the trade was closed at a loss when price moved.
The image above shows the same trade a few hours later, which when given time and space to complete the trade closed in profit of +1.63%.

BTC-ETH and BTC-FUN

Two trades opened within a couple of minutes of each other. The lower image shows that trades were once again closed, perhaps manually or by SL, yet once again both trades closed in profit.

ETH-LSK

Another trader losing -2.26%, most likely due to SL whist the trade went on to reach the target TP of +1.60%.

BTC-ONT

With this trade we were able to capture 3 instances of the trade from the 3Commas Market Place stats.
Initially the trader was stopped out for a loss of -3.16%, at a later time other traders closed at a profit of +0.91% and ultimately the trade completed with a max profit of +2.07%

BTC-AGI

More of the same, this time the trader lost -4.60% whilst others went on to get a profit of +4.86%.

In theory, a stop-loss is supposed to be your safety net, but it is only as goods as the exchange and the ability to close out of a trade at the stop price. When the market moves quickly and even violently, liquidity can often dry up. The lower the volume on the trading pair, the more likely this can happen, though it can still happen on major pairs.

With low liquidity, a trade will exit at the first price it can, and this can be a long way from your original stop-loss, potentially leaving you with much larger loses than you were originally anticipating and planning for by using the stop-loss.

We have executed over 200,000 trades (Jan 2021) based on Keiko signals without using a stop-loss, and it has been highly profitable for us. It would have been far less profitable had we used a stop loss. It would also have been disastrous if we were trading too large for our account. – how large is too large, is impossible to say, depends on the individuals’ tolerance for risk, availability of additional funds and many other factors.  

Whilst it is important for traders to make their own decisions regarding how to trade, if your intention is to use a stop loss then perhaps a different signal provider would be a better choice, or discretionary trade, where we would certainly advocate the use of SL.

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