Ok, Sean, Just wanted to confirm. We dont manage stops in any way, let in ride yeah?
Correct. No stops. The reason I don't use stops is because we don't want be killed by the market makers. Most brokers will tell you to use stops to minimize losses. However, most successful traders also know that that's bullshXX and that's how they make money by filling your stop orders. My system does not even give them a chance to take our money that way.
The market will only move a certain pip amount either way towards a certain direction within a 24 hour time frame. Provided that you do not place any take profits but let it ride also eliminates the need for stops. By doing this you simply do not allow the bucketshops to take your money. Simple as that.
The market will not move 1000 pips in a single day and even if it did you're more likely to be on the money plus your gains will surpass losses in a longer term perspective.
Let's say that in a hypothetical situation your trades are 50% on the right direction. Let's also say that in average, the EURUSD has been moving 147 pips on a daily(24hours) basis for the last 6 months. Provided that you do not pay for spreads and trade either way daily(each trade lasting 24 hours) without take profits or stop losses, theoretically your account should remain relatively the same after 6 months. Now let's say that instead of 50% accuracy you have in average 85% accuracy. Do you need to use stops? Obviously no. Your gains would easily cover for the spreads or any losses. The best thing would be to let the market take it's course and allow it to work it's magic to the fullest potential.
If your trade direction is on the money most of the time(our case) and let it ride, your gains will substantially surpass losses even without placing stops only when you are following
proper money management rules. I recommend you follow my money management rules (which are really simple by the way) as posted in my trade rules.
To make a long story short you don't need to limit your losses simply because you are not limiting your
gains.
FYI. with the Quantum system you don't even need to worry about crazy spreads because we don't even trade during news.
Let me know if you have any more questions.