Exiting a trade and taking partial profits | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Partial close StopLoss (Neither trailing nor partial TP) 9 replies

Taking partial take profits 7 replies

EA that allows limit order with stop loss and partial profits? 1 reply

Taking Partial Profits - Is it Profitable? 24 replies

Taking partial profits? 2 replies

Exiting a trade and taking partial profits

  • #1
  • First Post: Mar 16, 2010 3:50am Mar 16, 2010 3:50am
Hello,
Im wondering if anyone can help me as i am having trouble with this exit
strategy.

I will post a simple fictional example to show what im talking about:

Current price is at 100 and im taking a long entry
I go long with 2% risk spread over 3 lots
My risk is 60 pips
My break even take profit would be half my risk therefore

tp1 (be/tp) = 1/2 60 = 30 pips

so entry = 100
tp1 = 130
s/l = 40 (current price 100 - 60 risk)

So i get 3 lots going to 130 - at this point if i close 2 lots
in profit (2 x 30) do i have 60 pips profit and therefore my trade is at
breakeven?

Meaning that if my 3rd lot hits its sl at 40 (-60 pips?)
then the overall sum is zero or b/e?

Is this also the same if i risk 1 lot but divide it into 3
(3 x 0.33 lots)?

Sorry for asking a noob question
  • #2
  • Mar 16, 2010 4:31am Mar 16, 2010 4:31am
I can't quite follow your example, but I would suggest looking at %R for money management. Here is a thread that is pretty good and it discusses money management starting on post #18. The thread also goes through lot sizes and some other key information.

http://www.forexfactory.com/showthread.php?t=6948


I hope this helps.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #3
  • Mar 17, 2010 1:17am Mar 17, 2010 1:17am
Thanks for the reply,
I thought my example might have made things more confusing
when i posted it but my question is simple enough.

When you enter a trade with 3 lots and close 2 lots at (+)1/2 your risk,
are you now at breakeven? If you let the 3rd lot run and it doesnt go
back past your original entry then you are in profit?

I think there are many people who use 3 lot partial profits, im just hoping
that someone can confirm this is how its done.

Thanks again
  • #4
  • Edited Mar 18, 2010 6:54am Mar 17, 2010 7:28am | Edited Mar 18, 2010 6:54am
Quoting haventaclue
Thanks for the reply,
I thought my example might have made things more confusing
when i posted it but my question is simple enough.

When you enter a trade with 3 lots and close 2 lots at (+)1/2 your risk,
are you now at breakeven? If you let the 3rd lot run and it doesnt go
back past your original entry then you are in profit?

I think there are many people who use 3 lot partial profits, im just hoping
that someone can confirm this is how its done.

Thanks again
at the begining dont take any partial profit .
it will lower your winning stake.
when you will have enough hit rate you can use partial profit takeing stratagy.
at the beginning dont scale in or scale out from possition.odds will go against u.
hope this help

sho
  • #5
  • Mar 18, 2010 2:51am Mar 18, 2010 2:51am
"So i get 3 lots going to 130 - at this point if i close 2 lots in profit (2 x 30) do i have 60 pips profit and therefore my trade is at breakeven?
Meaning that if my 3rd lot hits its sl at 40 (-60 pips?) then the overall sum is zero or b/e?"
Yes, that's correct. 60 pips profit locked in, less 60 pips still at risk, means that the worst possible outcome is breakeven. Of course that assumes that your 60 pips have factored in the spread, in each casel.

"Is this also the same if i risk 1 lot but divide it into 3 (3 x 0.33 lots)?"
Yes, it's the same ratio. Your eventual P/L will be 1/3 of the previous example, dollar wise, but the number of pips remains identical.[/quote]
  • #6
  • Last Post: Edited 3:54am Mar 18, 2010 3:08am | Edited 3:54am
Quoting hanover
"So i get 3 lots going to 130 - at this point if i close 2 lots in profit (2 x 30) do i have 60 pips profit and therefore my trade is at breakeven?
Meaning that if my 3rd lot hits its sl at 40 (-60 pips?) then the overall sum is zero or b/e?"
Yes, that's correct. 60 pips profit locked in, less 60 pips still at risk, means that the worst possible outcome is breakeven. Of course that assumes that your 60 pips have factored in the spread, in each casel.

[color=RoyalBlue]"[i]Is this also the same if i risk 1 lot but...

Thank you for confirming this for me.

edit: i think i was wrong with my first example beacuse if i take 2 lots off at 30 it will be 2/3 of my risk of 2% which is 40 pips and not 60.
and my 3rd lot (other 1/3) would need to hit a different target to breakeven.
I am confusing myself now lol
Anyway thanks for the replies.
0 traders viewing now