Hi All
been thinking about trade management and here's what i come up with.
we open a position with our preferred trade size based on our MM methods. this is then divided into 3 even portions (positions A, B and C), once price has reached a point that is in profit equal to our SL we close 2/3 of the trade (close A and B), locking in some profit and balancing the potential loss to a Break even point, we then trail the third position using waves or set number of pips or moving average (which ever feel best to you), when we enter the next position, we can do this with the same full amount as the last remaining trade is already at BE from the start and holds no risk.
Position A all profit
position B covers positions 3's risk
Position C Sl at BE and room to run
as we move up the SL on 3 it's all profit that’s added to position 1.
ie
enter 3 position(A,B,C) on EU at 1.5300, SL @ 1.5200
A tp 1.5400
B tp 1.5400
C tp open
price hits 1.5400
close 2 positions (A,B) @ 1.5400
position A gives us 100pips profit
position B covers position C’s risk and allows the trade to be a free trade with the SL @ 1.5200, 200pips below price, now considered break even with no risk
Position C is allowed to run being trailed by either the current 200pips, Ma's and/or using waves (remember every time we move the Sl up this is also now profit)
Leave the SL on position C at 1.5200 gives us 200pips of room, this is achieved because the 100pips profit on position B covers positions C potential loss.
next we look for the next positionto add to the trade, enter the 3positions again, and again close out 2/3, now we have 2 positions running as free trades with large stops being exited via a trailing stop, moving average or your prefered method
Position 3 could also be managed the Jacko way using a simple TSL of 100pips if you like and let it tend to itself, that way the trade can be forgotten about.
anyone entered the Uchf, my chart still hasn't dropped through the short point to enter yet (short order pending), i think Eu is holding it up, damn ECB won't let it go
been thinking about trade management and here's what i come up with.
we open a position with our preferred trade size based on our MM methods. this is then divided into 3 even portions (positions A, B and C), once price has reached a point that is in profit equal to our SL we close 2/3 of the trade (close A and B), locking in some profit and balancing the potential loss to a Break even point, we then trail the third position using waves or set number of pips or moving average (which ever feel best to you), when we enter the next position, we can do this with the same full amount as the last remaining trade is already at BE from the start and holds no risk.
Position A all profit
position B covers positions 3's risk
Position C Sl at BE and room to run
as we move up the SL on 3 it's all profit that’s added to position 1.
ie
enter 3 position(A,B,C) on EU at 1.5300, SL @ 1.5200
A tp 1.5400
B tp 1.5400
C tp open
price hits 1.5400
close 2 positions (A,B) @ 1.5400
position A gives us 100pips profit
position B covers position C’s risk and allows the trade to be a free trade with the SL @ 1.5200, 200pips below price, now considered break even with no risk
Position C is allowed to run being trailed by either the current 200pips, Ma's and/or using waves (remember every time we move the Sl up this is also now profit)
Leave the SL on position C at 1.5200 gives us 200pips of room, this is achieved because the 100pips profit on position B covers positions C potential loss.
next we look for the next positionto add to the trade, enter the 3positions again, and again close out 2/3, now we have 2 positions running as free trades with large stops being exited via a trailing stop, moving average or your prefered method
Position 3 could also be managed the Jacko way using a simple TSL of 100pips if you like and let it tend to itself, that way the trade can be forgotten about.
anyone entered the Uchf, my chart still hasn't dropped through the short point to enter yet (short order pending), i think Eu is holding it up, damn ECB won't let it go
, take care, Raz