Hello there,
As I am often bored my brain came up with a new idea, this is about orders. You could use this with everything if it makes sense?
Example
So you get a signal that you have to buy. We call this entry buy 1 TP and SL can be anything (mathematical) for this example I use 100 pips as TP & SL. On those 100 pips we risk 1%.
Trade is not going that well and goes down 50 pips. Here we open entry sell 2 TP and SL are 50% of 1st trade so that is 50 pips. On this trade we risk the same as on entry buy 1.
If the price went futher down and went to TP of entry sell 2 and SL of entry buy 1 you would have lost nothing but the spread.
But ofcourse the second trade is also going the other direction than planned....
So when you are down 25 pips (50%) on entry sell 2 you open entry buy 3. With an TP and SL of 25 pips and ofcourse with the same % risk as the first trade.
So trade entry buy 3 goes to TP then trade entry sell 2 to SL and you are then on the same level you entered the first trade without losing anything only a bit spread money and still having entry buy 1 open.
If u see what I mean you could continu the cycle with more trades if trade 3 goes not good; 12,5 pips 6 pips etc.
Would this be risk free trading or is my brain giving me an illusion once again?
Food for thought.....
-Jysticim
As I am often bored my brain came up with a new idea, this is about orders. You could use this with everything if it makes sense?
Example
So you get a signal that you have to buy. We call this entry buy 1 TP and SL can be anything (mathematical) for this example I use 100 pips as TP & SL. On those 100 pips we risk 1%.
Trade is not going that well and goes down 50 pips. Here we open entry sell 2 TP and SL are 50% of 1st trade so that is 50 pips. On this trade we risk the same as on entry buy 1.
If the price went futher down and went to TP of entry sell 2 and SL of entry buy 1 you would have lost nothing but the spread.
But ofcourse the second trade is also going the other direction than planned....
So when you are down 25 pips (50%) on entry sell 2 you open entry buy 3. With an TP and SL of 25 pips and ofcourse with the same % risk as the first trade.
So trade entry buy 3 goes to TP then trade entry sell 2 to SL and you are then on the same level you entered the first trade without losing anything only a bit spread money and still having entry buy 1 open.
If u see what I mean you could continu the cycle with more trades if trade 3 goes not good; 12,5 pips 6 pips etc.
Would this be risk free trading or is my brain giving me an illusion once again?
Food for thought.....
-Jysticim