One of the secrets of being profitable in trading is controlling losses.
And that’s why in Galileo FX we created 5 different ways to limit trading losses.
If you make large gross profits but also large losses, your net profits get decimated:
NET PROFITS = GROSS PROFITS - LOSSES
Watch the video below to get a quick overview on how Galileo FX helps limiting losses.
If you want to succeed in trading, you need to be clever and limit losses as much as possible.
Here are 5 ways to limit trading losses in Galileo FX.
You can easily use these 5 settings together to minimize losses.
1. Stop Loss setting
This is the most common-sense setting. Every successful trader knows that using a Stop Loss is vital to make consistent profits.
In Galileo FX, it's easy to set a Stop Loss.
When you set a Stop Loss in Galileo FX, the stop loss is applied to every trade opened by the trading robot.
You'll be surprised how many people lose money in trading simply because they don't use the Stop Loss setting properly.
While it's true that some traders can make high profits without Stop Loss, it's highly recommended to use one.
TIP: Use Stop Loss to limit losses to a specific value for every trade opened by Galileo FX.
2. Max Orders setting
With the Max Orders setting, you can limit the number of trades opened by Galileo FX.
Using Max Orders is especially useful if you want to make sure that Galileo FX will not open a large number of orders.
Example: if Max Orders is set to 1 on EUR/USD, it means that Galileo FX will only open a trade on EUR/USD, until you change this setting.
If you keep it running for 15 days, it will only open 1 trade over those 15 days.
TIP: Use Max Orders to limit the number of orders opened by Galileo FX on a specific chart (for example, EUR/USD).
3. Consecutive Signals settings
In Galileo FX, you can decide the number of consecutive signals Galileo FX should wait to buy or sell.
You can set different values for Bullish and Bearish Consecutive Signals from 0 to 10.
While this setting is built to easily manage risk, it also has an impact on limiting losses.
To limit the probability of losses on each trade opened by Galileo FX, you need to use high values for Consecutive Signals as those are statistically proven to be less risky (but also less profitable than high risk settings).
For a longer explanation about risk and consecutive signals, please go to the Settings page.
TIP: Use Consecutive Signals between 8 and 10 to limit the risk of entering high-risk/high-reward trades.
4. Lot Size setting
5. Trailing Start & Step settings
This is an advanced setting for experienced traders - or if you want to experiment.
A Trailing Step is a measure of price movement and a key component of a Trailing Stop order – a type of stop-loss order that follows your position if it earns you profit and closes if the market moves against you.
In Galileo FX, the value of a Trailing Step is set in points.
For more information, please check: Galileo FX Tutorial: How to Install & Use the Trading Bot