DislikedDear traders ! Today I had only one trade. I know there were more opportunities, biut I wasnīt at my office today . hereīs my EA H4 trade . I put an security SL with 40 pips , and a fix TP 50 pips. After entereing the trade at the second candle open , I closed my notebook and left the house for meetings. Itīs one of the trades that just donīt work . -40 Demopips today. next week Iīm back on my trading desk and have time to catch some pips on the market . Guido {image}Ignored
Hi Guido,
We usually like to give each trade some 'room to breathe' hence not to place our initial SL too close to the Entry Price.
One way is to use the volatility. For EURAUD, the H4 volatility is higher than other USD major pairs, so using 2 times the ATR(10) would roughly give 93 pips as initial SL which is the trade Risk or 'R'.
Another way is to place the initial SL using the 2-Bars Look Back method, i.e. to place the iSL at the high of the previous 2 bars. In this example, that would also be where the last swing high was. That would be 'safe' technical stop to use.
I have two script which I use to draw the EP SL and TP lines as shown in above chart. These script will calculate the ATR and use that to plot the iSL and TPs levels using the ATR of that chart TF at the moment when you made that entry. Simply drag and drop the script to the exact point of your trade Entry.
These two scripts are attached, latest version on MT4 build 735.
I know the SL 93pips may be big when we trade with fix lot size. But when we use the % risk model and with position sizing and calculate the lot size using the R, the risk % is still the same.
The Exit Strategy is important and when we want to give priority to Capital Protection, we can move our iSL quickly when there is floating profit. How to determine the floatng profit to move the stop requires us to look at the price action.
regards,
Attached File(s)
Draw_Lines Sell EP SL TP v4.ex4
6 KB
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1,182 downloads
Draw_Lines Buy EP SL TP v4.ex4
6 KB
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1,134 downloads
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