Stop Loss Strategy Does Not Make Money

[quotes]

In martingale assumption, a stopped martingale is still a martingale.

So if you stop gambling at a certain loss level. After many times of gambling, your expected profit or loss is still 0, fortunately, in a fair casino.

So why do they set stop-loss strategy as an essential standard for risk management?

It does not make sense.

 

[darth]

In martingale assumption, a stopped martingale is still a martingale.

So if you stop gambling at a certain loss level. After many times of gambling, your expected profit or loss is still 0, fortunately, in a fair casino.

So why do they set stop-loss strategy as an essential standard for risk management?

It does not make sense.

You have to be smart enough to decide where to put ur SL... For example while trading SnP futures, irrespective of where you bought ... Always put your sl below 0 :P

 

[Yike Lu]

Two words - bank roll.