Here's a question I'd like some guidance on.
- Say your entry method has a good probability of working
- At 9am you get a short signal and take it, let's say Cable at 1.5765
- Price moves lower, stop is moved to unchanged
- However,at 11am you get another entry but this time long at 1.5725 which you again take
Would you leave the initial short, and get stopped out an hour or so later as the long entry works?
Or would you cover the short at 1.5725, the same level the long was established?
I know there's...Ignored
If both signals were generated with in couple of hours and hardly 50 pips apart, there is a bigger chance of SL being hit on both sides.
Currently, in my practice what I do is, I allow the market to take out the short at the logical stop loss. This is anyway already committed risk. However, I will re-enter short exactly at the same price, if price comes back after taking out your initial SL and cover the long.
Haste not to Enter AND Haste not to Exit ! -TradeStar