DislikedThanks for that neo. that cleared up most of it. Still unsure of the GBPJPY SL.
It worries me that you have to protect it. I gather you have so much margin used that you have to be careful. Can you let me know is it 100 pips account profit or just 100 pips profit on the GBPJPY pair. before you implement the SL.
If it is the GBPJPY then what if it never reaches a profit? Market drops for a long trend just after opening the hedge trades?
Be great to know the boundaries of the Hedge too. How far each way have you seen it go?
One more thing opening new trades continuously can't be good long term can you have a read below and let me know what you think.
Open 10 or even 20 sets over 10 or 20 days. When you wish to add money to your account (eg fund) or compound swap. Then you can close out the nearest to break even and replace the set with a new set higher in Lot size then for get it. Accounts with FXDD go down to micro so why not use it. This will mean you get hit with an extra spread but a very low one (1 20th infact).
You then know you have 20 trades no less no more. I can't see the longevity in a system that continues to add trades (very messy)
Let me know your thoughts.Ignored
It is a possibility that your GBP/JPY will never reach the 100 PIPS, that is why I have stated that entry is key for my system. You can plan your entry when the gbp/jpy dips, and there are many other suggestions out there, including using a bolinger band, murray math, pivot point, and even fundamental analysis. I cannot possibly cover all of that, but the good thing about my trade is that even if you enter the market less than perfect, by spreading your risk out in 10 days, you will end up fine. I have seen many times that my order didnt reach the 100 pips initially, but once it is, I will lock in 1 pip with my Stop Loss. Once it is in the 200/300, you can pretty much relax and let it ride. The problem is getting it thru the first few days, (yes, only a few days, although it could seem like an eternity) and once you are there, you are there.
As you can see that the market will be unforgiving at times, my first entry to the market resulted me up to 200 PIPS of loss in my gbp/jpy, but my other pairs hedged my position so I was able to handle that storm, I was down to 15% drawdown on my account, but now that gbp/jpy order is up almost 700 PIPS, and my total equity has increase about 25%.
This new set was entered on 3/28/2007.
Again with my previous explaination, it is financially unsound to close your position and just to pay double on spread. When you are in this hedge business, it is not unheard of to see people having 100~200 orders standing. If merely 20 orders will look messy, then I guess either do it on a demo and get yourself ready for it, or try other methods. One thing will probably help you is to sort your orders by DATE. Since you are entering one set per day, it will be pretty easy to manage your orders and close them accordingly.
Its all about getting used to. In scalping you are trying to limit yourself one trade and never leave a trade open overnight, this strategy you want to leave them open for as long as you can.