Home Community Trade Signal Discussion Stop loss

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    • #7659
      edbaff1ed
      Participant

      I see on the member dashboard that stop loss guidance is set to -3.53%. But on trade history, losses are sometimes significantly higher (-8.17% for instance). Do you know why that is the case?

      It’s only human to focus on losses , don’t get me wrong I like what I see 😀

    • #7664
      Justin
      Moderator

      No, that’s a great question!

      In general, one of the main areas we work on is loss control. If you dig back in our history, you’ll see the losses become less extreme over time. Our 4.x models are the best yet at controlling loss.

      A bit more-

      In the earlier versions of the models, we let the machine learning decide when to open and close positions. It turns out our ML had pretty high tolerance for losses. It’s possible that approach works in the long run, but it’s hard for us humans to stomach. 🙂

      Our 3.0 models introduced stop losses and 3.5 introduced trailing stops to better protect profitable positions. Basically, we added that mechanism into the mix so the ML algorithms can play with them and choose how to set the limits.

      Our stop losses are internal to our system and not set on the exchange. There are pros and cons to this. The main pro is it helps keep our system fully in sync with the activity in the account.

      Now, with all of that said, if the market is in the midst of a flash drop, it’s possible to blast through a stop loss, which is probably what you saw in the 8% loss. That can happen even with a stop loss set on the exchange.

      For more detail-
      General: https://crypto-ml.com/blog/stop-loss/
      3.0 info: https://crypto-ml.com/blog/machine-learning-models-3-0-released-major-change/
      3.5 info: https://crypto-ml.com/blog/crypto-trading-machine-learning-models-upgraded/

    • #7667
      Justin
      Moderator

      And sigh…speaking of the devil…

    • #7669
      LeoTheLion
      Participant

      Regarding auto trader, I just signed up for this. Is there a major difference between Market Order and Limit Order?

    • #7678
      admin
      Keymaster

      Hello @juliandwillett, yes. This is described here: https://crypto-ml.com/blog/market-orders-vs-limit-orders-for-auto-trade/

      For most people, Market Order is the best option. However, neither option is perfect, each with its own pros and cons.

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