THIS IS ONLY A DEMO TRADE FOR DEMONSTRATING PURPOSES.
I have entered this trade on a demo account to illistrate how you can spread the risk and make your stoploss within acceptable limits.
I entered because of a pullback to 89sma. The signal candle to be a bearish engulfing candle. House stats better then forcast.
The signal candle body to be approx. 60 pips so I entered 1lot at 1.5365 with stoploss set at 1.5425 which gives 60pips. Then I put a sell limit to sell 1 lot at 1.5395(± 50% retracement of signal candle) with stoploss set at the same level as first lot at 1.5425 equals to 30 pips. So my average stoploss equals to 90/2=45pips per lot which is within my tolerance.
If the second lot is not triggered I will manage the existing one and see if I can enter later when the system give me a chance. We are below the 89sma so we are looking for short oppertunities as long as the rhythm confirms that which is the case with the pullback to the 89sma. Once 1.5335 is breached and price goes below that we might have a continiuation of the down move. I will watch carefully at that or near that level for some indication of support if the price wants to came back upwards. That is allready +30 pips gain so I wont let that run into a loss if the price goes to that level.
If the 2nd lot is triggered and the price move in my direction I will set both at BE when 1st lot entry level of 1.5365 is reached giving me a free ride.
Lets see how this one works out.
Edit
Especially Murphys law. Lets see if this one will work out. As long as you get the concept. One negative aspect is that the stoploss is not on the other side of the 89sma. That would have been perfect. So that can be used as a sort of filter as well to protect you in the future as the price might go and test the 89 once again.
Edit
Second lot is triggered so now we are in Lions country. Lets see how price reacts at 1.5400 level.
Edit
Got stopped out. But as I said. Only another way to spread the risk especially when there is a high probability trade.
Lets hope this week bring some more pips.
Phillip
I have entered this trade on a demo account to illistrate how you can spread the risk and make your stoploss within acceptable limits.
I entered because of a pullback to 89sma. The signal candle to be a bearish engulfing candle. House stats better then forcast.
The signal candle body to be approx. 60 pips so I entered 1lot at 1.5365 with stoploss set at 1.5425 which gives 60pips. Then I put a sell limit to sell 1 lot at 1.5395(± 50% retracement of signal candle) with stoploss set at the same level as first lot at 1.5425 equals to 30 pips. So my average stoploss equals to 90/2=45pips per lot which is within my tolerance.
If the second lot is not triggered I will manage the existing one and see if I can enter later when the system give me a chance. We are below the 89sma so we are looking for short oppertunities as long as the rhythm confirms that which is the case with the pullback to the 89sma. Once 1.5335 is breached and price goes below that we might have a continiuation of the down move. I will watch carefully at that or near that level for some indication of support if the price wants to came back upwards. That is allready +30 pips gain so I wont let that run into a loss if the price goes to that level.
If the 2nd lot is triggered and the price move in my direction I will set both at BE when 1st lot entry level of 1.5365 is reached giving me a free ride.
Lets see how this one works out.
Edit
Especially Murphys law. Lets see if this one will work out. As long as you get the concept. One negative aspect is that the stoploss is not on the other side of the 89sma. That would have been perfect. So that can be used as a sort of filter as well to protect you in the future as the price might go and test the 89 once again.
Edit
Second lot is triggered so now we are in Lions country. Lets see how price reacts at 1.5400 level.
Edit
Got stopped out. But as I said. Only another way to spread the risk especially when there is a high probability trade.
Lets hope this week bring some more pips.
Phillip
Attached Image (click to enlarge)
